Meesho IPO opens today: Should you subscribe to the ₹5,421 crore issue?

Meesho Ltd. will open its ₹5,421.2 crore initial public offering (IPO) for subscription on Wednesday, December 3, with the issue set to close on Friday, December 5. Ahead of the launch, the ecommerce major has raised ₹2,439.5 crore from anchor investors.

Anchor investors subscribed to 21.98 crore equity shares of the company at ₹111 apiece.

Of these, 9.37 Cr equity shares, or 43% of the anchor book, were lapped up by 14 domestic mutual funds, including SBI, Aditya Birla Sun Life, Axis, HSBC, among others. Other prominent investors who participated in the anchor round were the Government of Singapore, Tiger Global, BlackRock and Fidelity, Morgan Stanley, among others.

Should you apply for the Meesho IPO?

Angel One: For High-Risk, Long-Term Investors

Angel One has recommended a 'Subscribe for long term' rating. At the upper end of the price band, ₹111 per share, Meesho's post-issue market capitalisation stands at about ₹50,096 crore. As the company remains loss-making, P/E isn't a meaningful ratio, but the offer values Meesho at 5.3 times FY25 price-to-sales.

This is backed by a strong GMV run-rate of $6.2 billion and improving marketplace contribution margins, which reached 3.8% of NMV in the first half of FY26. The brokerage said that while scale momentum is strong, near-term profitability volatility means the issue is better suited for long-term, high-risk investors.

SBI Securities: Subscribe For Long-Term

SBI Securities has also suggested subscribing at the cut-off price for a long-term horizon.

The brokerage mentioned that Meesho operates on a zero-commission model and earns primarily from logistics and advertising.

Despite reporting net losses, the company has generated positive free cash flows for the past two years. Tax expenses of ₹2,487 crore in FY25 and ₹72 crore in H1 FY26 were linked to a business combination, and with that event now complete, exceptional tax charges are unlikely to recur.

SBI said Meesho's path to sustainable profitability will be critical as it continues to invest in technology, marketing and engineering.

Meesho IPO: Price band and issue structure

The price band has been set at ₹105-₹111 per share, with a face value of ₹1.

Retail investors can apply for a lot of 135 shares, requiring a minimum investment of ₹14,985. Only 10% of the issue is reserved for retail investors, while QIBs have a 75% quota and non-institutional investors 15%. Small HNIs will need to apply for at least 1,890 shares (₹2,09,790), and large HNIs for 9,045 shares (₹10 lakh).

The IPO comprises a fresh issue of ₹4,250 crore and an Offer for Sale of ₹1,171.2 crore by existing investors.

At the top end of the price band, Meesho's market cap will stand near ₹50,000 crore. Promoter holding will decline from 19.08% to 16.76% after the issue.

Meesho IPO: Latest GMP

In the grey market, Meesho's shares are trading at a premium of up to 47%, though these unofficial indicators can fluctuate sharply and do not guarantee listing performance.

Management commentary

Speaking to CNBC-TV18, Chairman and CEO Vidit Aatrey said the company defines profitability through cash generation, citing that Meesho has been free cash flow positive for two years and plans to stay that way while growing.

He reiterated that the company has no plans to introduce a platform fee to boost short-term earnings, saying trust with customers will not be compromised.

On valuation, senior leadership said pricing was set to attract long-term institutional investors and is aligned with what both domestic and global investors find reasonable.

Company overview

Incorporated in 2015, Meesho operates a multi-sided technology platform that drives e-commerce in India by connecting consumers, sellers, logistics partners and content creators. The company's primary marketplace segment facilitates transactions through a technology-driven platform, generating revenues mainly from seller services like order fulfilment, advertising and seller insights.

Kotak Capital, JPMorgan, Morgan Stanley, Axis Capital and Citigroup are the book-running lead managers.

Share allotment is scheduled for Monday, December 8, with listing expected on December 10.