Meesho shares close 53% above issue price on debut; valued at ₹76,814 crore

Meesho shares listed at a 45 per cent premium and ended 53 per cent above the issue price, after its IPO was subscribed 79 times and raised Rs 5,421 crore for growth plans

Shares of e-commerce platform Meesho delivered a strong debut on Wednesday, closing 53 per cent above their issue price in one of the year’s most keenly watched listings. 

The stock listed at ₹161, a 45 per cent premium to the issue price of ₹11, and surged further to an intraday high of  ₹177.5 before settling at ₹170. At the last close, the firm — backed by global investment giants such as SoftBank Group and Prosus — is valued at ₹76,814 crore. 

The robust listing follows overwhelming investor interest — the IPO was subscribed 79 times — and adds to the momentum another record year for India’s primary markets. 

 

Meesho’s listing joins a series of recent high-profile debuts that have delivered sharp listing gains. Urban Company jumped 62 per cent, LG Electronics rose 48 per cent, and PhysicsWallah gained 42 per cent and Billionbrains Garage Ventures (Groww) rose 30 per cent on their respective debuts. 

Meanwhile, two other companies made their market debut on Wednesday. Aequs closed with a 22 per cent premium, after its ₹922-crore offering — subscribed 102 times — attracted bids worth ₹52,000 crore. Vidya Wires, despite being subscribed 27 times, ended just 2 per cent above its issue price. 

The broader picture for new listings is mixed this year with about 30 companies listing at a discount, while another 30 gaining less than 10 per cent on debut. For instance, Lenskart Solutions, which listed flat and continues to trade just 0.7 per cent above its issue price, has rekindled concerns over elevated startup valuations. 

“Better listings haven’t necessarily eased valuation worries, but they have improved sentiment,” said Ambareesh Baliga, independent equity analyst. “Ultimately, long-term cash flows determine valuations. Investors eyeing only listing-day gains should have clear stop-loss levels, especially when broader markets are weakening.” 

Meesho’s ₹5,421-crore IPO involved fresh fund raise of ₹4,250 crore, which it will use for marketing initiatives, inorganic growth and for penetrating in smaller cities. 

Meesho operates as a marketplace, connecting small manufacturers with value-oriented consumers, mainly in smaller cities.

Meesho becomes the fourth portfolio firm of Netherland-based Prosus to go public in the past one year. Others include Swiggy, BlueStone and Urban Company. 

“Our continued investment in Meesho reflects our belief that they are well placed to leverage digital adoption and demographic tailwinds in the ecommerce segment in India. We remain focused on supporting companies like Meesho that are building for the long term, with technology at the core,” said Ashutosh Sharma, Head, Prosus India. 

The number of IPOs this calendar crossed the 100 mark this week, while total mobilisation has reached about ₹1.75 trillion. 

Notably, this is the first time India is witnessing two consecutive years of record fundraising, breaking the historical pattern where blockbuster years were typically followed by subdued activity.