Meesho lists at 46% premium; analysts upbeat on long-term view; here's why

Meesho listing, Meesho share price: Softbank-backed e-commerce player Meesho made a bumper debut on Dalal Street. The company's shares listed at ₹162 per share, a premium of ₹51 or 46 per cent on the NSE. Post-listing, the stock touched a high of ₹172.8, up 6.5 per cent from the listing price. 

 

On the BSE as well, Meesho shares opened at ₹161.20, a premium of 45 per cent. Post-listing, the stock rose around 7 per cent from the listing price to ₹172.5.

 

The listing price of Meesho was above the grey market estimates. Ahead of the listing, unlisted shares of Meesho were trading at ₹154, commanding a grey market premium (GMP) of ₹43 or 38.74 per cent against the issue price, according to sources tracking unofficial markets.

 

Here's what the analysts say post-listing:

Domestic brokerage Choice Equity Broking has initiated coverage on Meesho with a 'Buy' rating, citing the company's structural competitive Moats, strong monetisation runway, and accelerating path to profitability. The brokerage has set a target price of ₹200, valuing the company at 4x FY28E EV/Revenue, with a three-stage DCF performed purely as a sanity check.

 

"Meesho remains in the high-growth phase of the platform lifecycle and is expected to deliver 31 per cent FY25–28E revenue CAGR, supported by deep value-commerce penetration and logistics efficiencies as Valmo scales. Ebitda is projected to turn positive by FY27E on operating leverage and improving unit economics," the brokerage said in its note.  

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However, despite this outlook, Meesho trades at 2.4x FY28E EV/Revenue against the peer average of 5.4x, indicating substantial upside potential as fundamentals strengthen, the brokerage added.

 

Shivani Nyati, head of wealth at Swastika Investmart, said 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. The upbeat debut was supported by Meesho’s deep penetration in Tier-II and Tier-III cities, its asset-light logistics ecosystem, and its strong traction among price-sensitive users.

 

However, she warned that investors should 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 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," Nyati said. 

Meesho IPO subscription rate

According to National Stock Exchange (NSE) data, the Meesho IPO received a robust response from investors, with overall subscription reaching 79.03 times. Investors placed bids for 21.96 billion equity shares against the 27.93 million shares available. Qualified Institutional Buyers (QIBs) led the demand, oversubscribing their allotted quota by 121.18 times. The Non-Institutional Investors (NIIs) segment was subscribed 38.16 times, while the retail investors’ portion received 19.08 times more bids than the shares on offer.

Meesho IPO details

Meesho successfully raised ₹5,421.20 crore through its initial public offering, which comprised a fresh issue of 382.9 million equity shares and an offer for sale (OFS) of 105.5 million equity shares. The IPO was offered in the price band of ₹105 to ₹111 per share, with a minimum application lot of 135 shares. The issue was open for subscription from December 3 to December 5. The allotment of shares was finalised on Monday, December 8.

 

According to the RHP, 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.

 

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