Investor interest picked up quickly as the Meesho initial public offering opened for bidding, with the retail portion getting fully subscribed within hours. The strong start reflects rising confidence in India’s value driven e-commerce market, where Meesho has established a solid presence across Tier 2 and Tier 3 regions. Early subscription trends indicate growing participation from small investors who continue to drive momentum in the offer.
Latest data shows the retail individual investor category subscribed 1.38 times, while the non-institutional investor segment is steadily gaining traction. The qualified institutional buyer segment remains mostly inactive so far, keeping overall subscription at 0.37 times and leaving space for institutional inflows. The grey market premium has climbed to Rs 49, suggesting a possible listing price near Rs 160 against the upper band of Rs 111. Market observers say this could translate into listing gains of nearly 44.14% if sentiment remains firm.
Meesho’s Rs 5421.20 crore IPO includes a fresh issue of Rs. 4,250 crore and an offer for sale of Rs. 1171.20 crore, with a price band between Rs. 105 and Rs. 111. Retail investors need Rs. 14,985 for one lot of 135 shares. The offer gained early strength after Meesho secured Rs. 2,439 crore from more than 60 anchor investors, including major mutual funds and global investment firms. This anchor turnout signals strong confidence in Meesho’s business model and the rising appeal of affordable online retail.
Brokerages offered a mix of supportive views and cautionary points. One brokerage said Meesho has built a strong position in smaller towns and highlighted that the company turned free cash flow positive in FY25 despite net losses due to one off items. At a valuation of around Rs. 50,000 crores, the firm trades at nearly 5.5 times FY25 price to sales. Another brokerage pointed to Meesho’s everyday low prices model, efficient tech operations and zero commission structure and values the company at around 4.7 times FY25 sales. A separate brokerage noted risks such as seller dependence, marketing intensity and competition from major online and offline players but also underlined strengths like its technology use, logistics network and nearly 23 million annual transacting customers. With retail enthusiasm rising and grey market signals strong, the IPO is expected to attract more institutional interest before closing on December 5, with allotment on December 8 and listing on December 10.
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