Meesho IPO opens Dec 3: Analysts recommend long-term buy; should you bid?

Analysts at SBI Securities and Arihant Capital have recommended that investors subscribe to the Meesho IPO with a long-term perspective.

Meesho IPO: Meesho, a Softbank-backed e-commerce player, is set to launch its initial public offering (IPO) on Wednesday, December 3, 2025. The company aims to raise ₹5,421.2 crore through its maiden public issue. The mainline offering comprises a fresh issue of 382.9 crore shares worth ₹4,250 crore and an offer for sale (OFS) of 105.5 million shares worth ₹1,171.2 crore. 

 

Under the OFS, Vidit Aatrey, Sanjeev Kumar, Elevation Capital V, Peak XV Partners Investments V, Venture Highway Series 1, Golden Summit, Y Combinator Continuity Holdings I, Man Hay Tam, Sarin Family India, and Gemini Investments are the selling shareholders. 

 

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The company has reserved not less than 75 per cent of the issue for Qualified Institutional Buyers (QIBs), not more than 15 per cent for Non-Institutional Investors (NIIs), and not more than 10 per cent for retail investors.

Meesho IPO GMP

On Tuesday, December 2, 2025, the unlisted shares of Meesho were trading at ₹157.5, up ₹46.5 or 42 per cent compared to the upper end of the price band of ₹105 to ₹111 per share, according to sources tracking unofficial markets.  ALSO READ | Meesho IPO to unlock ₹1,020 crore bonanza for founders, early backers

Meesho IPO: Here's what the experts say

Analysts at Arihant Capital said Meesho enters FY26 with a robust outlook, supported by scaled flywheels, AI-led efficiencies through Meesho AI Labs, and emerging growth drivers such as content commerce, Meesho Mall and financial-services pilots. They noted that India’s content-commerce penetration remains far below China’s, offering room for expansion as Meesho targets deeper Tier-2+ markets and a large base of 692–706 million smartphone users.

 

The brokerage highlights improving metrics, including higher order frequency (9.5 LTM), declining CAC, and logistics costs moving toward China levels (₹43 per order in FY25). With 44 per cent H1 NMV growth, it expects Meesho to sustain over 30 per cent GMV CAGR and stronger FCF conversion, while cautioning that macro headwinds and competition remain key risks.

 

"At the upper band of ₹111, the issue is valued at a P/S ratio of 2.3x, based on a FY26E annualised revenue. We are

recommending a 'Subscribe for long term' rating for this issue," the brokerage said in its note.

 

Meanwhile, according to SBI Securities, Meesho follows a zero-commission model and earns most of its revenue from logistics and advertising. While the company remains loss-making on a net basis - even after excluding exceptional items - it has generated positive free cash flows for the last two years. Meesho also reported tax charges of ₹2,487 crore in FY25 and ₹72 crore in 1HFY26 due to a business-combination event, which, being completed, is unlikely to recur and should help narrow losses going ahead.

 

Analysts noted that at the upper price band of ₹111, Meesho is valued at 5.3× FY25 price-to-sales on a post-issue basis. The brokerage believes the company’s ability to move toward sustainable profitability will be crucial, especially as investments in technology, marketing and engineering continue. SBI Securities recommends investors subscribe at the cut-off price with a long-term perspective.  ALSO READ | Meesho plans to set aside ₹480 cr from IPO proceeds to pay AI, tech staff

Here are the key details of the Meesho IPO:

The three-day subscription window to bid for the Meesho IPO will close on Friday, December 5, 2025. The allotment of shares is expected to be finalised on Monday, December 8, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Tuesday, December 9, 2025. 

 

Shares of Meesho will make their debut on the exchanges, NSE and BSE, tentatively on Wednesday, December 10, 2025. 

 

The company has set the price band in the range of ₹105 to ₹111, with a lot size of 135 shares. A retail investor would require a minimum investment of ₹14,985 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar of the issue. Kotak Mahindra Capital Company, JP Morgan India, Morgan Stanley India Company, Axis Capital, and Citigroup Global Markets India are the book-running lead managers of the issue. 

 

According to the DRHP, Meesho plans to use ₹1,390 crore from the net fresh issue proceeds to enhance cloud infrastructure at its subsidiary MTPL, and ₹480 crore for salaries of existing and new hires in its AI, Machine Learning, and technology teams. Additionally, ₹1,020 crore will be used for marketing and brand-building for MTPL, with the remaining funds allocated to inorganic growth, strategic projects, and general corporate purposes.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.