Meesho IPO: Issue received solid response on Day 01, booked 2.46 times on strong retail interest

Meesho IPO in focus: The initial public offering of SoftBank-backed e-commerce firm Meesho Ltd. witnessed healthy demand from both retail and non-institutional investors on its first day of bidding.

The IPO, which remains open until Friday, December 05, received bids for 66 crore shares against the total offer of 26.86 crore shares, resulting in an overall subscription of 2.46 times by the end of Day 1, according to exchange data.

Among the investor segments, the Retail Individual Investors category saw the highest interest at 4.13 times subscription, followed by QIB at 2.18 times. The non-institutional investors portion was subscribed 2.18 times, as per the exchange data.

Meesho IPO details

The Meesho IPO is a book-built issue worth ₹5,421 crore, which is a combination of a fresh issue of 38.29 crore shares aggregating to ₹4,250 crore and an offer for sale of 10.55 crore shares aggregating to ₹1,171.20 crore.

The price band of the Meesho IPO has been fixed at ₹105– ₹111 per share. Retail investors can apply for a minimum of 135 shares in one lot and up to 13 lots. At the upper end of the price band, ₹11 per share, retail investors are required to make a minimum investment of ₹14,985 per lot.

The company plans to use IPO proceeds for multiple purposes, including ₹480 crore for salaries of AI and technology teams at its subsidiary Meesho Technologies Private Limited (MTPL), ₹1,390 crore for cloud infrastructure, and ₹1,020 crore for marketing and brand initiatives. Additional funds will support acquisitions, strategic initiatives, and general corporate purposes.

In other issue details, the Meesho IPO allotment of shares is expected to be finalized on Monday, December 08. The company will initiate refunds on Tuesday, December 09, and the shares will be credited to the demat accounts of allottees on the same day following refunds.

The shares are set to list on both NSE and BSE tentatively on Wednesday, December 10.

Meesho GMP signals over 46% premium

As of today, the grey market premium (GMP) for the Meesho IPO stands at ₹51 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹162, reflecting a 46% premium over the upper issue price of ₹111 per share.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

About Meesho

Incorporated in 2015, Meesho Limited is a multi-sided e-commerce platform in India connecting consumers, sellers, logistics partners, and content creators. Its marketplace offers affordable products to consumers and a low-cost growth platform for sellers.

The company reported a net loss of ₹3,942 crore in FY25, mainly due to one-time transition-related taxes. However, losses narrowed to ₹700.72 crore in H1 FY26, while revenues rose to ₹5,577.54 crore from ₹4,311.29 crore a year earlier.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.