Mumbai: E-commerce platform Meesho's initial public offering (IPO) saw strong investor interest on its first day, December 3, with the issue being subscribed 2.46 times overall. Retail individual investors showed particularly robust demand, bidding for 4.13 times the shares reserved for them. The public offer opened on Wednesday and will close on Friday, December 5, with the company aiming to raise ₹5,421.20 crore.
Strong Subscription Across Categories
The IPO, which has a price band of ₹105 to ₹111 per equity share, attracted bids across all investor categories. Beyond the retail segment's significant oversubscription, the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 2.18 times, excluding anchor investors. Non-Institutional Investors (NIIs) also showed considerable interest, with their portion being booked 1.90 times by the end of Day 1. This strong early response highlights investor confidence in the SoftBank-backed e-commerce firm.
The IPO comprises a fresh issue of shares worth ₹4,250 crore and an Offer for Sale (OFS) of 10.55 crore equity shares, aggregating to ₹1,171.20 crore from existing shareholders. Ahead of the public offering, Meesho successfully raised ₹2,439.54 crore from anchor investors on December 2, allotting shares at ₹111 each to 125 anchor investors. These anchor investors included prominent names such as SBI Mutual Fund, GIC, Fidelity, BlackRock, Axis Mutual Fund, Aditya Birla Mutual Fund, and tech-focused investors like Dragoneer.
About Meesho and its Vision
Meesho, incorporated in 2015, operates as a multi-sided technology platform that drives e-commerce across India. The company has built an asset-light, value-focused marketplace under the Meesho brand, connecting consumers, sellers, logistics partners, and content creators. It has emerged as India's largest e-commerce marketplace by placed orders and annual transacting users in the 12 months leading up to September 30, 2025. Meesho primarily focuses on serving buyers in Tier-2 and Tier-3 cities, a rapidly expanding and often underserved segment of the Indian market.
"Meesho's business model, which emphasizes low-cost and a zero-commission approach for sellers, resonates well with the diverse needs of Indian consumers and small businesses," stated an analyst from Mehta Equities, adding that the company is well-positioned to gain market share and improve profitability due to its strong category penetration and rising monthly active users. The company reported operating revenue of ₹9,389.9 crore for FY25, a 23% rise year-on-year. However, it also reported a loss of ₹3,941.71 crore for FY25, attributed to ESOP expenses and restructuring charges.
Purpose of the Funds and Future Outlook
Meesho intends to use the net proceeds from the fresh issue for several key objectives. A significant portion, ₹1,390 crore, will be invested in cloud infrastructure for its subsidiary, Meesho Technologies Private Limited. Another ₹480 crore is allocated to cover salaries for existing and new hires in the machine learning, AI, and technology teams at Meesho Technologies. Additionally, ₹1,020 crore is earmarked for marketing and brand-building initiatives. The remaining capital will fund inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes.
At the upper end of its price band, the IPO values Meesho at a market capitalization of approximately ₹50,096 crore. Analysts believe the valuation is fair when compared to other listed new-age technology peers, especially considering Meesho's asset-light, AI-driven, and zero-commission model. The strong investor response on Day 1 sets a positive tone for the remainder of the subscription period. The allotment of shares is expected to be finalized on December 8, with the shares tentatively scheduled to list on both the BSE and NSE on December 10.
