The company has set a price range of Rs 105-111 and is positioning itself as a high-volume, low-cost marketplace that has rapidly scaled across Tier-2 and Tier-3 India. Meesho’s IPO includes a fresh issue of Rs 4,250 crore and an offer for sale worth Rs 1,171.20 crore.
Meesho IPO Subscription Status: (As of 11:20 AM, Day 1)
– General: According to BSE data, 42% of IPOs were subscribed.
– Retail Private Investors (RIIs): Fully registered within the first hour; now at 1.57 times for shares offered of Rs 5.10 crore.
– Non-institutional investors (NIIs): Subscribed to 49% of the offered shares of Rs 7.65 crore.
– Qualified Institutional Buyers (QIBs): No bids have been made yet for the Rs 15.03 crore shares reserved for them.
Meesho IPO GMP today
As of December 3, the latest gray market premium for Meesho’s IPO is Rs 49, or 44.10%, based on the top price band of Rs 111. The IPO is expected to quote around Rs 160 per share.
Meesho IPO details
Meesho’s IPO is valued at Rs 5,421.20 crore, comprising:
– New song: 38.29 crore shares worth Rs 4,250 crore
– Offer for sale (OFS): 10.55 crore shares worth Rs 1,171.20 crore
The issue opened on December 3, 2025 and closes on December 5, 2025.
Allocation: Expected on December 8, 2025
Listing (BSE & NSE): Tentative on December 10, 2025
Business and market context
The IPO comes at a time when Indian mass market e-commerce is shifting towards low-value purchases, unbranded products and regional sellers, segments in which Meesho is already the market leader. Between FY23 and FY25, the annual transaction user base grew 46%, easily outpacing broader India e-commerce growth of 11-20%.
In FY25, 19.9 crore users transacted on Meesho, of which 17.4 crore were from outside the top eight metros, demonstrating deep Tier-2 and Tier-3 penetration.
Analysts say Meesho’s valuation, around 5x FY25 revenue, appears steep but is reflective of the growth trajectory and size of India’s value e-commerce segment.
Ishan Tanna of Ashika Institutional Equity Research notes: “The company is still loss-making, but the market is betting on rising order volumes and improving operational efficiencies to boost future profitability. High valuations for loss-making companies could be volatile if growth slows or costs rise.”
ICICI Direct highlights Meesho’s disciplined expansion, supported by Bharat-focused penetration, streamlined cost structure and improved contribution margins. The company has delivered positive free cash flow for two consecutive years, with Rs 581.5 crore of LTM FCF as of H1FY26.
Read more: Meesho IPO GMP Live Updates: Check key dates, price, GMP and what investors should pay attention to
Operational performance
The order volume increased from Rs 102.4 crore in FY23 to Rs 183.4 crore in FY25. During this period, Meesho deliberately reduced its average order value to support its ‘everyday low price’ positioning.
Its proprietary logistics system, Valmo, coordinates multiple last-mile partners, reducing fulfillment costs and enabling scale. Contribution margins improved by 200 basis points to 4.9% over two years, supported by higher prepaid orders and Valmo-led efficiencies.
Financial performance
Meesho reported FY25 revenue of Rs 9,390.9 crore, up 23% year-on-year. EBITDA losses have narrowed, but the company remains in the red, reporting an adjusted loss for FY25 of Rs 2,595 crore. ICICI Direct believes that strong operating leverage and better economic performance will provide long-term comfort.
Strengths and risks:
Meesho’s greatest strength lies in its zero-commission market model, which has attracted a large seller base and enabled an extensive catalog of low-cost, unbranded and regional products. In H1FY26, the platform hosted 15.4 crore daily active product listings, significantly higher than the previous year. The cost-efficient logistics and high user involvement provide even more competitive advantage. However, significant risks remain.
A large proportion of orders are still made cash on delivery, which increases the risk of cancellations, fraud and higher operating costs. Competition from larger e-commerce platforms remains fierce in logistics, seller onboarding, affordability tools and product discovery. These challenges could put pressure on margins, especially as Meesho continues to invest heavily in growth.
Should you subscribe?
ICICI Direct has recommended subscribing to the IPO, citing Meesho’s improved operational metrics, user base expansion and attractive sector positioning. SBI Securities has also issued a ‘subscribe’ rating, but warns that the company’s transition to sustainable profitability will be critical as it ramps up investments in technology, marketing and talent.
With strong retail demand, healthy GMP and positive brokerage insights, Meesho’s IPO is shaping up to be one of the most watched listings of the year, offering a glimpse into India’s fast-growing mass-market digital consumption ecosystem.
(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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