NEW DELHI: E-commerce platform Meesho made a stellar debut on the exchanges as its shares were at 46% premium over its initial public offer (IPO) price on Wednesday. On the BSE, the scrip was listed at Rs 161.20 per share, a premium of 45.23% and on the NSE it was listed at Rs 162.50, a premium of 46.4%. The company's market capitalization post listing surged to Rs 72,752 crore.
Meesho’s IPO was priced in the range of Rs 105–111 a share, valuing the company at Rs 50,096 crore at the upper end of the price band.
Before the market debut, Meesho’s shares were commanding a premium of up to 35% in the unofficial grey market. The SoftBank-backed firm’s Rs 5,421-crore initial public offering (IPO) generated massive interest from primary market investors as the issue was subscribed 79.02 times on the final day of bidding. The company raised a little over Rs 2,439 crore from anchor investors.
Santosh Meena, Head of Research at Swastika Investmart said that the strong listing highlights robust investor appetite for India’s fast-growing digital commerce ecosystem and confidence in Meesho’s unique “zero-commission” marketplace model.
Meena added that Meesho’s strengths include its large and engaged user base, competitive pricing advantage due to the lowest seller commissions in the industry, efficient technology-led marketplace operations, and a rapidly improving path to profitability.
However, despite the successful debut, investors remain cautious about rising competitive pressures from large incumbents, regulatory clarity around deep discounting and small-seller protection, and the need for Meesho to sustain profitability amidst intense price wars. “Investors/traders who received allotment may consider booking partial profits while holding the remaining position for medium to long-term gains, keeping a stop-loss around ₹130 to manage potential volatility,” he said.
Most analysts had given a buy rating to the issue. “Meesho’s focus on affordability and frequency creates a structural moat that is difficult for traditional e-commerce players to replicate. At 4.5x Price/Sales (Q2FY26 annualized & diluted), valuations look reasonable compared to other e-commerce players (average 7x P/S); Hence, we recommend investors to ‘Subscribe’ to the issue,” said Motilal Oswal Financial Services
Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said that Meesho’s profitability will depend on cost discipline and marketing efficiency. He advised investors who received allotments to book partial gains on listing and hold the remaining shares for the long term.