Meesho IPO: GMP cools off to 29% but listing gains still expected to remain strong

Meesho shares continue to command significant investor interest ahead of their stock market debut on Wednesday, December 10, even as the grey market premium (GMP) cooled off marginally. As of December 9, the GMP stood at Rs 33–34 per share, translating into a 29.73% premium over the upper price band of Rs 111.

This is slightly lower than the Rs 40–41 GMP reported on December 8, which reflected a 36% premium, but still points to robust listing day sentiment.

The IPO, priced in the band of Rs 105–111 per share, closed on December 5 after a stellar response across investor categories. For retail investors, the total cost of one lot (135 shares) came to Rs 14,985.


Despite the slight dip in the GMP, analysts continue to expect listing gains for investors, driven by the overwhelming subscription numbers and positive sentiment around the company’s differentiated e-commerce model.

Meesho IPO sees strong demand

The Rs 5,421.2 crore Meesho IPO garnered a total subscription of 81.76 times, with bids pouring in across all investor categories. The public offer included a fresh issue of Rs 4,250 crore comprising approximately 38.29 crore shares, along with an offer for sale (OFS) of around 10.55 crore shares. Against the total offer size of 27.79 crore shares, the issue attracted bids for nearly 2,197 crore shares.

According to exchange data, the Qualified Institutional Buyers (QIB) category was subscribed to a massive 120.18 times, with bids exceeding 18 billion shares against an allotment of just over 15 crore shares. The Non-Institutional Investors (NII) segment witnessed a subscription of 38.16 times, while the Retail Individual Investor (RII) portion was subscribed 19.08 times.

What analysts are saying about Meesho shares?

Brokerage firm InCred Equities has assigned a SUBSCRIBE rating to Meesho’s IPO, specifically for short-term gains. In its note, the firm stated, "We assign a SUBSCRIBE rating to Meesho’s IPO for short-term gains, supported by an attractive valuation at 5.3x market capitalisation/sales. However, over the long run, value e-commerce will continue to face structural challenges."

InCred also highlighted the challenges of sustaining EBITDA breakeven, adding, "Achieving sustainable EBITDA breakeven remains a distant objective, given the inherent complexity of balancing supply-chain optimisation with passing on benefits to sellers, scaling ad-led monetisation, and preserving Meesho’s sharp price positioning."

Meanwhile, brokerage house Motilal Oswal is also bullish on Meesho’s long-term potential, recommending investors to "Subscribe" to the issue. It noted, "With a unique zero-commission & asset light model, deep Bharat penetration, a defensible logistics flywheel, and a rapidly scaling ad/content commerce engine, Meesho is positioned as one of India’s most powerful long-term consumer-tech stories."

Motilal Oswal further pointed out, "At 4.5x Price/Sales (Q2FY26 annualised & diluted), valuations look reasonable compared to other e-commerce players (average ~7x P/S)."

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Additionally, Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager of 129 Wealth Fund, noted that "It (Meesho) operates in a fast-growing ecommerce space with a large opportunity in India’s Tier-2 and Tier-3 cities. The growth headroom is sizeable, and that explains the strong sentiment around the IPO. But it is important to note that Meesho has only recently turned profitable. The sustainability of these profits, along with its relatively higher valuations, are factors investors should track closely."

He further stated, "In summary, Meesho is best suited for investors looking for short-term listing gains."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)