Meesho IPO listing: GMP signals strong debut for e-commerce player

After receiving a strong investor response to its ₹5,421-crore initial public offering (IPO), e-commerce platform Meesho has created buzz in the grey market ahead of its listing on the BSE and NSE on December 10. The grey market trends point to a positive listing, with the stock commanding a premium of ₹35 in the unlisted market. This indicates a potential listing price of around ₹146, a 31.5% gain over the issue price of ₹111 per share.

“At a valuation of about $6 billion (₹50,000 crore), Meesho is priced at roughly 5.5x Price-to-Sales (FY25), which is attractive compared to Zomato (often trading above 10x sales),” said Shivani Nyati, Head of Wealth at Swastika Investmart.

“The strong subscription across investor categories and positive GMP trends further support expectations of a healthy listing,” she added.

She further said that Meesho has successfully carved out a niche in tier 2 and tier 3 cities, where Amazon and Flipkart have limited penetration. It also enjoys a ‘scarcity premium’ as the only pure-play value e-commerce stock in India.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said, “We expect Meesho Ltd to debut in the ₹139–₹144 range, implying a 25–30% premium to the issue price, supported by strong subscription momentum and healthy investor appetite for its asset-light, high-growth marketplace model.

He recommended that investors seeking short-term gains may consider booking profits on listing, while those with a higher risk appetite can hold the stock for 12–18 months, given Meesho’s positioning as one of India’s fastest-scaling, value-driven e-commerce franchises.

“At the upper price band of ₹111, the IPO values the company at approximately ₹50,096 crore, which we believe is fairly priced relative to listed new-age tech peers, considering its growth trajectory and improving financial profile,” Tapse said.

The Meesho IPO, which opened for bidding between December 3-5, was subscribed nearly 79 times as it received bids worth ₹2.42 lakh crore, with more than 2,196 crore shares bid against just 27.79 crore shares on offer.

The issue, priced at ₹105–₹111 per share, saw overwhelming institutional participation, with the QIB segment subscribed 120.18×, contributing bids worth ₹2,00,596 crore. The NII segment subscribed 39.85×, adding ₹32,409 crore, while retail investors subscribed 19.89×, bidding over 97 crore shares valued at ₹10,783 crore.

Ahead of the launch, Meesho had raised ₹2,439 crore through its anchor book, which was oversubscribed more than 32 times.  Top global funds including Tiger Global, BlackRock, GIC, ADIA and Fidelity, along with domestic giant SBI Mutual Fund, collectively poured in bids totalling nearly ₹80,000 crore. Out of the total allocation to the anchor investors, ₹1,040 crore worth of shares (or 45.91%) were allocated to 14 domestic mutual funds through a total of 52 total schemes, as per the exchange data.

Meesho IPO comprises a fresh issue of equity shares worth ₹4,250 crore and an offer for sale (OFS) of 10.55 crore shares worth ₹1,171 crore. Among the selling shareholders in the OFS are Elevation Capital, Peak XV Partners, Golden Summit, Y Combinator, and the promoters.

Meesho plans to use the proceeds from its fresh equity issuance to enhance its cloud infrastructure through its subsidiary, Meesho Technologies Private Limited, support salaries for its AI, machine learning and technology teams, and step up investments in marketing, brand building and strategic acquisitions. A portion of the funds will also be allocated to general corporate purposes.

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