Meesho shares dazzle on debut, list at 46% premium over IPO price

Synopsis
Meesho shares surged 46% on their Dalal Street debut, listing at a significant premium to their IPO price. The strong listing followed an overwhelming subscription response, with investors showing high conviction in the e-commerce marketplace's growth potential. Despite robust revenue growth, the company faces challenges with widening net losses and achieving sustained profitability.
Shares of Meesho made a stellar debut on Dalal Street, listing with 46% premium on Wednesday after a strong subscription response for its IPO. The company was listed at Rs 162.05 and Rs 161.20 on NSE and BSE, respectively, as against an issue price of Rs 111.
Brokerages had anticipated a healthy debut, supported by subscription momentum and positioning as one of India's fastest-growing online marketplaces.
According to Prashanth Tapse, research analyst at Mehta Equities, short-term investors may consider taking listing gains, while high-risk investors can hold for 12–18 months to participate in the company's growth cycle.
Tapse added that Meesho's category leadership in low-cost fashion, home and personal care, and its scale-led efficiencies make the long-term story compelling, even though valuations are demanding.
The broader backdrop to the listing is one of the strongest subscription responses seen for a new-age tech IPO. Meesho's IPO was subscribed 81.76 times overall, reflecting high conviction from all investor categories. Qualified institutional buyers drove the rally with bids 123.34 times the portion reserved for them.
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Non-institutional investors subscribed 39.85 times, and retail investors bid 19.89 times. The company received 62.75 lakh applications, placing it among the most sought-after digital IPOs in recent years.
Meesho Share Price Listing: Check live share price and other details here
The offer comprised a fresh issue of Rs 4,250 crore and an offer for sale worth Rs 1,171 crore. The company plans to use proceeds to strengthen cloud infrastructure, expand AI and ML teams, widen its logistics capacity, increase marketing spends, and pursue acquisitions through its subsidiary, MTPL.
Meesho operates a large-scale, asset-light e-commerce marketplace connecting consumers, small merchants, creators and logistics partners. Its model is designed around affordability and high-frequency purchases, which has helped it attract one of India's largest online customer bases. The company ended FY25 with 706,000 annual transacting sellers and 234 million annual transacting users.
Financial performance shows both scale and stress. Revenue rose 26% to Rs 9,901 crore in FY25, driven by higher order volumes across value-led categories. However, net losses widened sharply to Rs 3,942 crore due to rising fulfilment costs, technology expenses and competitive pricing. In the first half of FY26, losses stood at Rs 701 crore.
Meesho remains debt-free, but analysts note that profitability and sustained unit economics will be key challenges after listing.
Ahead of the launch, Meesho raised Rs 2,439 crore from anchor investors on December 2, allotting nearly 22 crore shares to global long-only funds, domestic mutual funds and sovereign wealth funds. That participation helped build confidence in the IPO.
Meesho enters the market with both tailwinds and scrutiny. The listing on Tuesday has set the first benchmark for investor sentiment, after which attention will shift to the company's path towards profitability, execution of its technology investments and its ability to defend market share in India's intensely competitive e-commerce landscape.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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