Meesho IPO Sees Slow Start Despite Strong GMP Signalling Big Listing Gains

Meesho Ltd., the Bengaluru-based Social Commerce Unicorn valued at over $5 billion, launched its highly anticipated Initial Public Offering (IPO) on Wednesday, December 3, 2025, aiming to raise up to ₹7,050 crore through a mix of fresh issuance and an offer for sale by promoters. The three-day book-built issue, priced in the band of ₹105 to ₹111 per share, opened to a tepid response in the initial hours, with overall subscription at just 0.11 times (11%) as of 10:20 a.m., led by retail investors at 0.39 times, while qualified institutional buyers (QIBs) showed no interest yet.

The IPO comprises a fresh issue of ₹4,250 crore to fuel expansion in cloud infrastructure, AI-driven machine learning teams, and marketing initiatives, alongside an offer for sale (OFS) of 10 crore equity shares by existing shareholders, including co-founders Vidit Aatrey and Sanjeev Kumar, who are offloading stakes. Proceeds will see ₹1,390 crore allocated to subsidiary Meesho Technologies for cloud upgrades, ₹480 crore for salaries in tech teams, and ₹1,020 crore for brand-building efforts. The minimum lot size for bidding is set at 135 shares, translating to an application amount of ₹14,985 at the upper price band for retail investors.

Early indicators from the grey market suggest strong post-listing potential, with the Grey Market Premium (GMP) trading at ₹49 as of 10:00 a.m., implying a listing gain of 44.14% at ₹160 per share over the ₹111 cap. This enthusiasm stems from Meesho's robust growth trajectory: the company, founded in 2015, boasts over 140 million annual transacting users and a 17% market share in India's e-commerce space, particularly in Tier-2 and smaller cities where it empowers resellers via social media platforms like WhatsApp and Facebook.

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Book-running lead managers Kotak Mahindra Capital, JPMorgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India are overseeing the issue, with KFin Technologies as registrar. The allotment is tentatively scheduled for December 8, followed by demat crediting on December 9 and listing on BSE and NSE on December 10. Non-institutional investors (NIIs) subscribed 0.15 times so far, reflecting cautious sentiment amid broader market volatility.

Meesho's IPO marks a milestone for India's social commerce sector, which has exploded post-pandemic, with the platform reporting FY25 revenues of ₹7,728 crore—a 33% year-on-year jump—despite persistent losses of ₹1,465 crore due to aggressive scaling. Analysts remain bullish, citing the firm's 25% CAGR in order volume and strategic pivot toward quick commerce via MeeshoMall, positioning it as a challenger to giants like Flipkart and Amazon in underserved markets.

As bidding continues until December 5, investors are watching for QIB participation to drive subscription higher, with the issue reserved 50% for QIBs, 15% for NIIs, and 35% for retail. A successful debut could value Meesho at ₹28,000-30,000 crore post-listing, underscoring investor confidence in its hyperlocal, women-led reseller model that has onboarded over 1.5 million entrepreneurs.

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