Meesho's IPO: What to expect from India's latest unicorn
What's the story
Meesho, one of India's leading e-commerce platforms, is all set to make its debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Wednesday, December 10. The company's ₹5,400 crore initial public offering (IPO) was a massive success, getting subscribed a whopping 79 times. The public listing will be one of the most awaited tech debuts of the year.
Subscription details
IPO details and market response
Meesho's IPO, which opened on December 3 and closed on December 5, consisted of a fresh issue of around 38.29 crore shares worth ₹4,250 crore and an offer for sale of 10.55 crore shares. The issue was oversubscribed by a whopping 79 times with institutional investors leading the charge. The QIB category alone was subscribed 120 times with over 18 billion bids for just over 15 crore shares on offer.
Market outlook
Market performance and future prospects
Meesho's last GMP on December 7 was ₹42.5, indicating a potential listing price of ₹153.5 against the upper band of ₹111, a gain of 38.29%. The company's strong presence in low-value, unbranded product categories has helped it grow its annual transacting users by 46% between FY23 and FY25. In FY25 alone, nearly 20 crore users placed orders on Meesho, with over 17 crore from outside top eight cities.
Financials
Financial performance and market valuation
Despite remaining in the red with an adjusted FY25 loss of ₹2,595 crore, Meesho reported a 23.3% year-on-year increase in revenue to ₹9,390 crore for FY25. The company also narrowed its EBITDA losses during this period. Research analyst Ishan Tanna from Ashika Institutional Equity Research said that "the market is betting on rising order volumes and improving operational efficiency to drive future profitability."
Operational insights
Operational efficiency and market challenges
Meesho's order volumes jumped to 183 crore in FY25 from 102 crore in FY23, driven by its "everyday low price" strategy. The company's logistics backbone, Valmo, has also contributed to this growth. However, risks remain with heavy reliance on cash-on-delivery increasing fraud and cancelation risks. Competition is also fierce across fulfillment, product discovery, and affordability.