Meesho IPO booked 3x on strong demand; should you bid too? Analysts weigh

Analysts highlight Meesho's zero-commission, asset-light business model, coupled with its multi-sided marketplace and logistics network

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Meesho IPO: The much-awaited initial public offering of Softbank-backed e-commerce player Meesho opened for public subscription on Thursday, December 3, 2025, and received significant attention from investors. The company aims to raise ₹5,421 crore through a fresh issue of 382.9 million shares aggregating to ₹4,250 crore and an offer for sale (OFS) of 105.5 million shares aggregating to ₹1,171.2 crore. 

 

On the first day of bidding, the issue received bids for 654 million equity shares against 277.93 million shares on offer, reflecting a 2.35 times subscription. The demand was led by retail investors, who subscribed to their reserved quota by 3.85 times. The portion reserved for Qualified Institutional Buyers (QIBs) was booked 2.12 times, and the Non-Institutional Investors (NIIs) quota was booked 1.8 times.

 

As of 11:20 AM on December 4, the second day of bidding, the issue has been booked 3.22 times, receiving bids for 894.86 million shares against 277.93 million shares. The three-day subscription window will close on Friday, December 5. 

 

Analysts are largely positive on Meesho, citing its growth potential and market positioning. Brokerages highlight that the company's zero-commission, asset-light business model, coupled with its multi-sided marketplace and logistics network, sets it apart from other tech-driven e-commerce platforms in India and is a key driver of sustainable growth. 

Meesho IPO: Here's what the brokerages say

Nirmal Bang Securities

According to analysts at Nirmal Bang, Meesho has a strong foothold in the tier 2/3 cities' ecommerce business with its unique proposition of a zero commission asset-light business model, resulting in a low-cost, affordable products ecosystem benefitting sellers, consumers, content creators and logistics players in non-metro cities. The brokerage noted that the company is yet to post profits, but it has turned free cash flow positive in FY25.

 

"Meesho continues to make investments in technology and logistics, which we believe will lead to sustainable profitability in the coming years. Issue at upper price band is available at 5.7x FY25 Price/Sales, which looks reasonable and hence recommend ‘Subscribe’ to the issue," the brokerage said in its note.

Swastika Investmart

Analysts at Swastika Investmart said Meesho has "scarcity premium" as it is the only pure-play value e-commerce stock in India. "At a valuation of $6 billion (₹50,000 crore), it is priced at roughly 5.5x Price-to-Sales (FY25). This is attractive compared to Zomato (trading often at >10x Sales)," the brokerage said. Aggressive investors can subscribe for both listing gain and long-term, the brokerage recommends.   

ICICI Securities

According to ICICI Securities, Meesho’s zero-commission business model, focused on value-conscious consumers primarily in tier 2/3 towns, sets it apart from other listed tech-driven consumer service firms in India. The company’s efficient business model has enabled strong double-digit revenue growth alongside a rising customer base, while generating consistent free cash flow over the past two years.

 

Further, its valuation at 5x its FY25 revenues is at a discount to close peers. We recommend Subscribe on Meesho," the brokerage said in its note.

Mehta Equities

According to Mehta Equities, the Meesho IPO offers investors a chance to participate in one of India’s fastest-growing, value-focused e-commerce platforms, with leadership in categories like Fashion, Home & Kitchen, and Beauty & Personal Care. The company’s multi-sided marketplace, supported by commerce, logistics, and content flywheels, creates strong network effects and is reinforced by AI-driven personalisation and operational efficiency.

 

Meesho’s asset-light, zero-commission model and disciplined cost management have driven rapid user and order growth, while improving unit economics. Its logistics arm, Valmo, further enhances fulfilment efficiency. Revenue grew 32.8 per cent Y-o-Y in FY2024 and 23.3 per cent in FY2025, though profitability remains negative as the company invests in growth.

 

Given its strong category penetration, rising MAUs, and cost advantages, Mehta Equities recommends subscribing for risk-seeking investors with a long-term perspective.    Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.