“The main objects of the newly to-be-incorporated subsidiary is engaging in the business of logistics service provider for the movement of goods and undertake activities relating to loading, unloading, in-transit storage, handling and trans-shipment of goods through third-party service providers, as incidental or ancillary to transportation services,” the company said in a regulatory filing on January 12.
Meesho did not disclose the name of the subsidiary and stated: “Upon incorporation of the entity, the company shall make a separate disclosure disclosing the name of the entity.” Share Capital for the entity shall be Rs 1 lakh, it added.
On Monday, BofA Securities initiated coverage on newly listed e-commerce firm Meesho Ltd with a ‘Neutral’ rating and a price target of Rs 190 per share, a 14%upside from current levels. Logistics was identified as a monetisation driver. BofA said Meesho’s ability to serve value-focused users efficiently stems from its efforts to consistently reduce logistics costs. The brokerage noted that Meesho focuses on keeping logistics costs low for sellers rather than extracting profits from its logistics network, a strategy that helps sellers list a wider range of affordable products.
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The brokerage highlighted Meesho’s shift in its advertising model and its approach to logistics as key elements shaping the company’s longer-term outlook. At the same time, the brokerage’s neutral stance signals caution as the stock transitions from listing-driven momentum to closer scrutiny of execution and valuation.
Meesho shares continue to trade well above their IPO price. The stock is up about 46% from its issue price of Rs 111, although it has slipped 36% from its post-listing peak of Rs 254. Meesho shares are down about 8% so far in 2026.
The company made its stock market debut on December 10, listing at a premium to its issue price and closing 53% higher on the first day of trade. The stock debuted at Rs 162, a 46% premium to the IPO price, and ended its first session near Rs 170.
Meesho’s Rs 5,000-crore-plus IPO was subscribed 79 times overall, with retail investors alone bidding 19 times the shares on offer, reflecting strong demand at the time of listing.
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