The much-anticipated initial public offering of Meesho, the SoftBank-backed e-commerce platform, is scheduled to hit the markets next week, marking a significant milestone in India's digital commerce landscape.
Meesho IPO Key Dates and Financial Highlights
The Meesho IPO subscription window opens on Wednesday, December 3 and concludes on Friday, December 5, providing investors with a three-day bidding period. The company has set the price band between ₹105 and ₹115 per equity share, with each share having a face value of ₹10.
Meesho has demonstrated impressive growth metrics, establishing itself as India's largest e-commerce platform in terms of order volume and transacting users during the 12 months ending September 30. The platform connected over 5 lakh transacting sellers with 199 million annual transacting users in FY25, facilitating a remarkable 1.8 billion placed orders.
Financial Performance and Market Position
The company's financial strength is evident in its Net Merchandise Value growth, which surged 29% year-on-year to ₹29,988 crore in FY25. This follows a solid 21% growth recorded in FY24, showcasing consistent performance in the competitive e-commerce sector.
Meesho operates as a multi-sided technology platform that brings together four key stakeholders: consumers, sellers, logistics partners, and content creators. This integrated approach has positioned the company at the forefront of India's e-commerce revolution.
IPO Structure and Investment Details
The Meesho IPO comprises a combination of fresh issue of 38.29 crore shares aggregating to ₹4,250 crore and an offer for sale of 10.55 crore shares totaling ₹1,171.20 crore. The total public offer amounts to ₹5,421.20 crore through a book-build issue.
For retail investors, the lot size is set at 135 shares, requiring a minimum investment of ₹14,985 to participate in the IPO. The allocation structure reserves 75% for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors.
The current grey market premium (GMP) for Meesho shares stands at ₹39.50, indicating strong market interest. Based on the upper price band and current GMP, shares are expected to list at ₹150.50 apiece, representing a 35.59% premium over the IPO price range.
Utilization of Proceeds and Future Plans
According to the red herring prospectus, Meesho plans to utilize the fresh issue proceeds for strategic initiatives including investment in cloud infrastructure through its subsidiary Meesho Technologies Private Limited. The funds will also support salary payments for Machine Learning, AI, and technology teams, marketing and brand initiatives, inorganic growth through acquisitions, and general corporate purposes.
The anchor investor portion is scheduled to open on Tuesday, December 2, one day before the public subscription begins. Kfin Technologies Ltd. serves as the IPO registrar, while Kotak Mahindra Capital acts as the book running lead manager.
Investors can expect the share allotment to be finalized on Monday, December 8, with credit of shares to successful bidders and refunds to unsuccessful investors processed on December 9. The official listing on both BSE and NSE is set for Wednesday, December 10.
