Rs 47,000 crore profit! Meesho’s 95% rally makes it India’s best-performing major IPO of 2025

Meesho’s sharp rally on Wednesday, following a buy call from UBS, made it the best-performing major IPO in 2025. The stock rose about 20% on the session, taking its gains to nearly 95% from its issue price. Data from Trendlyne shows that for companies that raised more than Rs 5,000 crore this year, the second best return came from Groww, which is about 43% higher than the offer price.Meesho, which listed on December 10 after raising around Rs 5,421 crore, currently boasts a market capitalization of Rs 97,600 crore, or almost $11 billion. At the higher end of the price range, the company was valued at around Rs 50,100 crore.

This means that the company has added nearly Rs 47,000 crore in investor value post-listing. This was mainly due to a strong debut of Rs 162, a premium of over 46% over the issue price. The closing price of the first day was around Rs 170.However, analysts warn that there is only limited free float available for trading given the lock-in of major investors. This could mean that even small demand volumes or a shortage of supply could lead to volatile price movements. The first set of lock-in shares will open on January 6 next year.

UBS earlier initiated coverage on the company with a ‘Buy’ rating and a target price of Rs 220, citing multiple long-term growth drivers. The brokerage highlighted the company’s asset-light and negative working capital business model, which has helped it generate consistent positive cash flows, a key differentiator from many other internet companies.

UBS expects Meesho’s net trading value to grow at a compound annual rate of approximately 30% between FY25 and FY30, driven by a sharp increase in user transactions and higher order frequency. It also sees improving contribution margins and adjusted EBITDA margins as economies of scale materialize.

Among other major IPOs this year, Groww is up about 43% from its issue price, and LG Electronics India is up about 36% from its issue price, buoyed by brand strength, although the stock has seen more muted movement in recent weeks. Hexaware Technologies, which raised Rs 8,750 crore earlier this year, is up just over 8% from its issue price, reflecting a more cautious stance among investors amid concerns over global technology spending.

HDB Financial Services, despite a decent number of listings, is now only about 3% above its offer price as investors weigh its valuation and growth prospects in the NBFC space. Lenskart Solutions is barely above water, with a gain of less than 1%, while Tata Capital is up just 0.2%.

Meesho’s outperformance reflects a growing value in the Indian e-commerce sector, especially as the company focuses on low average order values, high user engagement and tight control over costs.

Also Read: Mega IPOs Beat the Bad Guy in 2025, Delivering Nearly Three Times the Returns of Smaller Listings

UBS noted that Meesho will likely pass on logistics efficiencies to merchants and consumers, which could further reduce average order value but expand the overall ecosystem and generate higher volumes.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)