The Meesho initial public offering (IPO) attracted strong interest from investors upon opening, with the retail portion fully subscribed within hours. This surge in demand reflects the growing enthusiasm for India’s value e-commerce sector, particularly in Tier-2 and Tier-3 markets where Meesho has established a significant presence.
Subscription data reveals that the retail individual investor (RII) category saw a subscription rate of 1.38 times, while the non-institutional investor (NII) segment is gradually building momentum. The qualified institutional buyer (QIB) category has been relatively inactive. Overall, the subscription rate stands at 0.37 times, indicating the potential for increased institutional participation in the upcoming sessions.
In the grey market, the latest Grey Market Premium (GMP) has risen to Rs 49, suggesting a potential listing price of around Rs 160, compared to the upper price band of Rs 111. Market observers anticipate listing gains of approximately 44.14% if the premium holds. Meesho’s IPO comprises a total issue size of Rs 5,421.20 crore, with a fresh issue of Rs 4,250 crore and an offer for sale worth Rs 1,171.20 crore. The price band ranges from Rs 105 to Rs 111, requiring Rs 14,985 for a retail application of 135 shares.
The IPO gained early traction after Meesho secured Rs 2,439 crore from over 60 anchor investors, including prominent names like SBI MF, GIC, BlackRock, Fidelity, and Dragoneer. This strong anchor investor turnout underscores institutional confidence in Meesho’s business model and the growth prospects of value-focused e-commerce.
Analysts have expressed positive sentiments towards Meesho, with Swastika Investmart highlighting the company’s strong position in smaller markets and its ability to generate free cash flow in FY25. Bajaj Broking praised Meesho’s efficient operations, zero-commission structure, and valuation multiples relative to peers. However, SBI Securities outlined risks related to seller dependence, competition, and operational challenges.
With robust retail interest, positive financial indicators, and strong anchor support, the IPO is expected to witness increased activity from institutional investors. The subscription period closes on December 5, with allotments finalized by December 8 and listing on NSE and BSE scheduled for December 10. Despite the optimistic outlook driven by retail demand and anchor investments, investors are urged to consider competition and execution risks before making investment decisions.