Shares of Meesho rose to Rs 193.50 on Tuesday, well past their listing day high of Rs 177.50 and well above the listing price of Rs 161.20. The stock is now up 74.3% from its issue price of Rs 111, cementing a blockbuster debut just days after the company entered public markets.
From IIT Delhi to the billionaires club
Aatrey studied electrical engineering from the Indian Institute of Technology, Delhi and completed his B.Tech in 2012. After graduation, he joined ITC Limited, where he worked in operations in Chennai from June 2012 to May 2014, before moving to InMobi, where he worked in strategy from June 2014 to June 2015 in Bengaluru.
He has been leading Meesho as CEO since June 2015. Born in 1991, Aatrey has featured in several young leadership rankings, including Forbes 30 Under 30 (Asia & India, 2018) and Fortune 40 Under 40 (2021).
Meesho’s debut rewrote the script
Meesho made its stock market debut on December 10, trading at a premium to its issue price and closing its first session 53% above its IPO price of Rs 111. After a two-day decline, the stock recovered and rose over 3% on Monday before continuing its rally on Tuesday even as broader markets remained under pressure. Trading activity in the stock remained strong. Turnover stood at Rs 124.38 crore, with a total traded volume of 66.84 lakh shares. According to BSE data, Meesho’s market capitalization was pegged at Rs 85,207.91 crore on a full basis and Rs 5,279.14 crore on a free-float basis.
The first institutional call adds momentum
The rally was boosted by Meesho’s first institutional rating. Choice Institutional Equities recently initiated coverage with a ‘Buy’ rating and a price target of Rs 200.
Citing a “faster path to profitability” as a key upside trigger, Choice Broking said it values Meesho at 4x FY28E EV/Revenue, supported by a three-tier DCF model and peer benchmarking. The brokerage expects Meesho to achieve a revenue CAGR of 31% between FY25 and FY28, driven by “deep penetration of value trading and logistics efficiencies.”
The brokerage highlighted Meesho’s zero commission, low AOV, discovery-led platform aimed at Tier-2 and Tier-3 users, along with what it described as a competitive advantage in user growth and operational scale. Meesho’s EBITDA is expected to turn positive in FY27E.
At current levels, Meesho trades at an EV/sales of 2.4x FY28E, compared to a peer average of 5.4x, leaving “room for revaluation as fundamentals strengthen,” the report said.
Choice also revealed execution risks, including heavy reliance on cash on delivery, which makes up 77% of the order mix, and logistics fragmentation. Still, the initiation positions Meesho as one of the key e-commerce players on the Street’s radar in India’s under-penetrated online retail market.
Also read IITian Vidit Aatrey joins billionaire club as Meesho shares soar 74% above issue price
The demand for Meesho’s IPO set the tone
Meesho’s three-day IPO, with a size of over Rs 5,000 crore, attracted strong demand from both institutional and retail investors. The issue was subscribed to a total of 79 times, while the retail portion was subscribed to more than 19 times.
The tranche reserved for qualified institutional buyers was subscribed at 120 times the number of shares offered, paving the way for the post-listing surge that has now brought the co-founder into the ranks of billionaires.
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