Meesho closed its first day of commerce on Wednesday at Rs 170.2 after debuting with a 46% premium, one of many strongest openings for a digital-first firm in recent times. The inventory listed at Rs 162.05 on the NSE and Rs 161.20 on the BSE in opposition to a difficulty worth of Rs 111, rising additional to Rs 172.65 on the BSE and Rs 172.70 on the NSE in early commerce.
Brokerages had extensively anticipated a robust debut, inspired by hefty subscription numbers and Meesho’s positioning as certainly one of India’s fastest-scaling on-line marketplaces. Selection Institutional Equities mentioned that “Meesho is finest positioned to monetise this shift by way of its zero-commission, low-AOV, discovery-led platform serving Tier-2/3 customers. Lengthy-tail depth, content-led demand and logistics integration allow superior unit economics, with rising advert/fintech/fulfilment monetisation makes Meesho essentially the most leveraged play on the following 100–150Mn mass-market customers.”
The brokerage initiated protection with a ‘purchase’ score and a goal worth of Rs 200, projecting an 80% upside from the problem worth. It added that “Meesho’s industry-leading value construction offers a sustained aggressive edge in low-ASP classes, with incremental scale additional widening the aggressive hole,” and famous the corporate is on monitor for EBITDA breakeven in FY27.
Do you have to purchase, promote or maintain Meesho shares?
The query now dominating conversations is what traders ought to do after the inventory’s two-day, near-vertical rise.
Shivani Nyati, Head of Wealth at Swastika Investmart, mentioned Meesho’s spectacular itemizing displays sturdy urge for food for India’s digital commerce enlargement and confidence within the firm’s “zero-commission” mannequin. She highlighted the corporate’s deep Tier-II and Tier-III penetration, traction amongst women-led resellers and small entrepreneurs, and fast order development throughout trend, magnificence, residence necessities and life-style classes.
Nyati mentioned Meesho’s strengths embody tech-led operational effectivity, aggressive pricing and a sharply enhancing profitability trajectory. However she cautioned that aggressive depth, regulatory readability on discounting and the necessity to maintain profitability are key dangers.
She suggested that “Buyers/merchants who obtained allotment might think about reserving partial earnings whereas holding the remaining place for medium to long-term beneficial properties, maintaining a stop-loss round Rs 130 to handle potential volatility.”
Forward of the itemizing, Prashanth Tapse of Mehta Equities had mentioned short-term traders may think about taking itemizing beneficial properties, whereas high-risk traders may maintain for 12–18 months to take part within the development cycle. He pointed to Meesho’s class management in low-cost trend and residential and private care as long-term positives, although valuations stay demanding.
What drove the Meesho frenzy?
Meesho’s IPO was subscribed 81.76 instances total — one of many strongest responses seen for a technology-led firm this decade. Certified institutional consumers subscribed 123.34 instances, non-institutional traders 39.85 instances and retail traders 19.89 instances. The corporate drew 62.75 lakh purposes, making it one of the crucial sought-after digital IPOs in current reminiscence.
The Rs 5,421 crore provide comprised a recent problem of Rs 4,250 crore and a suggestion on the market of Rs 1,171 crore. Proceeds are earmarked for cloud infrastructure, AI and ML group enlargement, logistics scale-up, advertising spends and potential acquisitions by way of its subsidiary MTPL.
Earlier, on December 2, Meesho raised Rs 2,439 crore from anchor traders, allotting almost 22 crore shares to world long-only funds, sovereign wealth funds and home mutual funds.
Meesho’s enterprise
Meesho runs an asset-light, affordability-led market connecting shoppers, small retailers, creators and logistics companions. It had 706,000 annual transacting sellers and 234 million annual transacting customers in FY25.
Income grew 26% to Rs 9,901 crore in FY25, however web losses widened sharply to Rs 3,942 crore as a result of fulfilment, expertise and aggressive bills. Losses within the first half of FY26 stood at Rs 701 crore.
The corporate is debt-free, however profitability and unit economics stay an important focus areas for analysts.
The highway forward
Meesho enters the general public markets with scale, sturdy demand and deep penetration throughout India’s consumption-driven web financial system and with scrutiny over profitability, aggressive pressures and execution.
For now, the inventory has delivered precisely what traders hoped for: explosive itemizing beneficial properties. What occurs from right here will depend on how successfully Meesho interprets its large consumer base into earnings and the way a lot volatility you’re ready to navigate on the way in which.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of the Financial Occasions)
