Meesho IPO Update: Day 3 Insights on Subscription, GMP, Price Band, and Ratings
Online shopping platform Meesho is witnessing a surge of interest in its initial public offering (IPO), which has entered its final day of bidding. The IPO has been oversubscribed by 9.07 times, with investors placing bids for 221 crore shares against the 27.79 crore shares available. The offering, valued at Rs 5,421.20 crore, includes a fresh issue of shares and an offer-for-sale component, reflecting strong demand from the market.
IPO Details and Timeline
Meesho’s IPO, which opened for public subscription on December 3, 2025, is set to close on December 5, 2025. The offering comprises a fresh issue of 38.29 crore shares valued at Rs 4,250 crore, alongside an offer-for-sale of 10.55 crore shares worth Rs 1,171.20 crore. The price band for the IPO is set between Rs 105 and Rs 111 per equity share, with a face value of Rs 10 each and a minimum lot size of 135 shares. Share allotment is expected on December 8, 2025, followed by the listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 10, 2025.
Market Response and Subscription Status
The grey market premium (GMP) for Meesho’s IPO is currently around 45%, with estimates suggesting a potential listing price of approximately Rs 160.5 per share, indicating a possible gain of about 44.59%. As of 10:30 AM, the overall subscription rate stands at 9.07 times. Retail Individual Investors (RIIs) have shown particularly strong interest, subscribing 10.22 times, while Non-Institutional Investors (NIIs) have subscribed 12.44 times. Qualified Institutional Buyers (QIBs) have also demonstrated robust demand, with a subscription rate of 6.97 times.
Financial Performance and Growth Prospects
In the fiscal year 2025, Meesho reported a revenue of Rs 9,389.9 crore, reflecting a year-on-year growth of 23.3%. Despite this growth, the company continues to face challenges, reporting an adjusted loss of Rs 2,595.3 crore. Analysts from ICICI Direct have noted that Meesho’s improving operating metrics and rising user base provide a positive outlook for its long-term prospects. The company’s zero-commission model has attracted a diverse seller base, contributing to an extensive catalog of low-cost products.
Challenges and Analyst Recommendations
While Meesho’s growth trajectory appears promising, the company faces several risks, including a high reliance on cash-on-delivery orders, which can lead to cancellations and increased operational costs. Additionally, competition in logistics and seller acquisition remains fierce. Analysts have mixed views on the IPO, with some recommending subscription based on Meesho’s growth potential and improving metrics. However, they caution that the company must demonstrate its ability to achieve sustainable profitability amidst a competitive e-commerce landscape. Overall, the IPO has garnered significant attention, with strong retail participation and favorable brokerage assessments indicating a closely watched listing ahead.
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