Meesho, the homegrown e-commerce platform, made a spectacular debut on the stock market, listing at a 46% premium over its initial public offering (IPO) price on Wednesday. Investors eagerly responded, reflecting strong confidence in the company’s growth potential.
The shares opened at Rs 162.50 on the National Stock Exchange (NSE), well above the IPO price range of Rs 105-111 per share, marking a robust premium of 46.4%. On the Bombay Stock Exchange (BSE), the stock listed at Rs 161.20, a rise of 45.23%. During intraday trading, Meesho shares climbed as high as Rs 177.49, a striking 60% gain from the IPO price.
The IPO, which raised Rs 5,421 crore, witnessed overwhelming investor interest, being subscribed 79 times in the primary market from December 3 to 5. Anchor investors contributed over Rs 2,439 crore, underscoring the market’s positive sentiment.
Meesho’s appeal lies in its strong presence in Tier-2 and Tier-3 cities, a segment where larger e-commerce players like Amazon and Flipkart have limited penetration. The company has also achieved Free Cash Flow (FCF) positivity in FY25, signaling efficient operations even as net profits remain affected by one-off expenses. Analysts point out that Meesho’s valuation of around Rs 50,000 crore translates to roughly 5.5x Price-to-Sales for FY25, offering an attractive alternative in the value e-commerce space.
The proceeds from the IPO are expected to be deployed in strengthening cloud infrastructure, scaling marketing efforts, funding strategic acquisitions, and supporting general corporate needs. Meesho’s debut performance highlights both investor appetite for tech-driven retail platforms and the company’s growing dominance in India’s untapped e-commerce markets.
