The offering includes a fresh issue of equity worth up to Rs 4,250 crore and an OFS of 10.55 crore shares by existing investors. The IPO opens on December 3 and will list on December 10, with the shares offered at a price band of Rs 105–111 apiece.
Key shareholders such as Elevation Capital V Ltd, Vidit Aatrey, Sanjeev Kumar, Peak XV Partners, and Venture Highway are among those offloading shares through the OFS route. While proceeds from the OFS will go to selling shareholders, funds raised via the fresh issue will be used to scale Meesho’s platform, strengthen its technology infrastructure, and enhance marketplace capabilities.
Red herring data shows the selling group has earned a combined profit of slightly over Rs 1,020 crore on an initial investment of about Rs 131 crore. This means every Rs 100 invested in these OFS shares at the weighted average cost has appreciated to roughly Rs 877 today.
Should you subscribe?
Meesho has established a solid, defensible position in India’s value-driven e-commerce segment, backed by strong scale, rising user engagement, and steadily improving unit economics. Its implied FY25 price-to-sales multiple of 5.5x is slightly below the peer median. Analysts note that while near-term profitability remains uncertain, the long-term story is compelling. “With a 31% GMP and improving fundamentals, the company offers a medium-term growth opportunity for investors comfortable with early-stage platform risk,” said Perumal Raja K. J., Equity Research – Associate Director, FundsIndia.
India’s retail market is expected to expand from Rs 83 lakh crore to nearly Rs 135 lakh crore by FY30, even as e-commerce grows at a robust 20–25% CAGR. Penetration in non-electronics categories remains low at around 5%, highlighting significant headroom for future growth.
Meesho Financials
Meesho’s Revenue grew from Rs 5,730 crore in FY23 to Rs 9,390 crore in FY25, supported by higher order frequency, expanding seller services and better fulfilment efficiency. Losses widened temporarily in Q1 FY26 due to one-time restructuring costs, ESOP charges, and elevated cloud/logistics spends. Adjusted for these, the underlying business continued improving. Meesho generated positive free cash flow in FY24 and FY25.
User and order growth continue to be a bright spot. For the six months ended September 30, 2025, annual transacting users climbed to 234.2 million from 175.1 million a year earlier. Orders surged to 1,261.14 million during the same period, compared with 824.59 million in 2024.
Seller activity has also strengthened. Annual transacting sellers rose to 706,471 in the twelve months to September 2025, up from 440,824 a year prior, with each seller averaging 3,214.5 orders—reflecting steady engagement on the platform.
Lead Managers
The IPO is being managed by a consortium of investment banks, including Kotak Mahindra Capital, J.P. Morgan, Morgan Stanley, Axis Capital and Citigroup, while KFin Technologies Limited is the registrar.
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The basis of allotment is expected to be finalised around December 8, with refunds and demat credits scheduled for December 9. Trading is set to begin on Wednesday, December 10, pending regulatory approvals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)