Meesho Shares Surge Nearly 60% On Debut Over IPO Price On NSE; Buy, Sell Or Hold?
E-commerce platform Meesho made a strong stock market debut on Wednesday, listing at a massive premium of over 46 percent against its Initial Public Offer (IPO) price. The public issue, which remained open for subscription from December 3 to December 5, received an overwhelming response from investors and was subscribed nearly 79 times.
On the National Stock Exchange (NSE), Meesho shares were listed at Rs 162.50 apiece, reflecting a 46.40 percent premium over the upper IPO band of Rs 111 per share. Meanwhile, on the Bombay Stock Exchange (BSE), the stock debuted at Rs 161.20, marking a 45.23 percent gain.
Following the strong listing, the company’s market capitalization surged to Rs 72,751.67 crore. During intraday trade, the stock climbed to a high of Rs 177.49, nearly 60 percent above its issue price.
Interestingly, Meesho’s listing performance exceeded grey market expectations, where the anticipated premium was around 39 percent, as per IPO Watch estimates.
Strong Investor Demand in Primary Market
The IPO saw robust participation across all investor categories. On the first day of bidding itself, the issue was subscribed 2.35 times, indicating solid demand. Ahead of the public issue, Meesho had also raised over Rs 2,439 crore from anchor investors, strengthening confidence in the offering.
The IPO had a total issue size of Rs 5,421 crore with a price band fixed at Rs 105–111 per share.
Experts’ Take: Buy, Sell or Hold?
Market experts remain optimistic about Meesho’s long-term prospects. Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted that Meesho has turned Free Cash Flow (FCF) positive in FY25, despite reporting net losses due to one-time expenses.
“At a valuation of around Rs 50,000 crore, Meesho is trading at approximately 5.5x Price-to-Sales (FY25 estimates), which is attractive when compared to peers like Zomato that trade above 10x sales. Meesho also enjoys a ‘scarcity premium’ as India’s only pure-play value e-commerce stock,” she said.
Mahesh M Ojha, Vice President – Research & Business Development at Kantilal Chagganlal Securities, added that Meesho’s strong presence in Tier-2 and Tier-3 cities, where larger giants like Amazon and Flipkart have limited deep penetration, gives it a competitive edge.
“With its scalable business model and rising user adoption, the outlook remains positive. Investors can consider holding the stock for the medium to long term,” he said.
Utilisation of IPO Proceeds
Meesho plans to deploy the IPO proceeds toward:
- Upgrading cloud infrastructure
- Brand-building and marketing initiatives
- Funding inorganic growth through acquisitions
- General corporate purposes
Disclaimer: The investment views and recommendations shared above are based on expert opinions. Sakshipost does not endorse any specific investment advice. Readers are advised to consult certified financial advisors before making investment decisions.
