The issue, which opened on December 3 and closes on December 5, includes a fresh issue of Rs 4,250 crore and an offer for sale of Rs 1,171.20 crore. Meesho has set a price range of Rs 105-111.
Meesho GMP today
On the gray market, sentiment remained optimistic. As of December 4 at 10:34 am, GMP stood at Rs 45, implying an estimated list price of Rs 156, a potential gain of 40.54% over the top end of the price range.
Meesho IPO Rationale
The IPO comes amid a structural shift in Indian mass-market e-commerce towards low-value purchases and unbranded products, segments in which Meesho has achieved market leadership, backed by deep penetration beyond metros.
Between FY23 and FY25, the number of annual transactions increased by 46%, easily outpacing the 11 to 20% growth in the broader industry. In FY25 alone, 19.9 crore users transacted on the platform, of which 17.4 crore were from outside the top eight metros.
Analysts say investors are willing to pay for that scale. Meesho’s valuation, around 5x FY25 revenue, is seen as ambitious but reflects the company’s rapid rise in the value e-commerce category.
Research analyst Ishan Tanna of Ashika Institutional Equity Research said: “The company is still making losses, but the market is betting on rising order volumes and improving operational efficiencies to boost profitability in the future. High valuations for loss-making companies can be volatile as growth slows or costs rise, but current optimism is focused on potential rather than current profits.”
Financial analysis of Meesho
Meesho reported FY25 revenues of Rs 9,389.9 crore, up 23.3% year-on-year. EBITDA losses have moderated, although the company remained in the red with an adjusted FY25 loss of Rs 2,595.3 crore.
ICICI Direct notes that Meesho’s high operating leverage and improving unit economics provide comfort. The platform has also delivered positive free cash flow for two consecutive years, with an LTM FCF of Rs 581.5 crore as of H1FY26.
Order volume rose sharply from Rs 102.4 crore in FY23 to Rs 183.4 crore in FY25, even as the company reduced average order value to strengthen its ‘everyday low price’ strategy. Contribution margins improved by 200 basis points to 4.9% over two years, supported by prepaid payments and efficiency improvements from Meesho’s logistics system Valmo.
Meesho’s zero commission model has attracted a massive seller ecosystem, helping the platform maintain 15.4 crore active product listings daily in H1FY26.
However, analysts identify risks. A large proportion of orders are still made cash on delivery, which increases the risk of fraud, cancellations and higher operational costs. Competition remains fierce in logistics, product discovery and affordability.
Still, analysts say Meesho’s capital-efficient structure and free cash flow profile are distinctive within the Indian consumer internet universe.
Should you subscribe?
Brokers remain constructive. ICICI Direct has recommended a subscription, citing Meesho’s improved operational metrics, growing user base and economies of scale. SBI Securities also recommends a subscription, citing the company’s “path to sustainable profitability” as a key metric to watch as it ramps up investments in technology, marketing and talent.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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