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Summary:

The SoftBank-backed e-commerce platform Meesho launched its IPO on December 3, 2025, with a price band of Rs 105-111 per share, valuing the company at approximately Rs 50,096 crore. The IPO consists of a fresh issue of shares and an offer for sale by existing shareholders. Early response to the IPO saw the retail portion booked 45% within minutes, with overall subscription at 13%. Experts have varying opinions, with some highlighting Meesho’s potential due to its reach in underserved markets and strong cash flow discipline, suggesting it’s a long-term investment. Others point to concerns about the company’s losses, competitive landscape, and uncertain path to sustainable profitability, despite recent positive free cash flow. The Grey Market Premium (GMP) indicates positive investor sentiment ahead of listing, with shares trading at a premium of over 44%.

News Article:

Meesho IPO Launches Amidst Mixed Expert Opinions, Retail Portion Quickly Subscribed

Mumbai, December 3, 2025 – E-commerce platform Meesho, backed by SoftBank, launched its highly anticipated Initial Public Offering (IPO) today, December 3, 2025. The company has set the price band at Rs 105-111 per share, valuing the business at approximately Rs 50,096 crore at the upper end of the range.

The IPO, totaling Rs 5,421.05 crore, comprises a fresh issue of shares worth Rs 4,250 crore and an offer for sale (OFS) of shares worth up to 10.55 crore by existing shareholders. Investors are required to bid for a minimum of 135 shares.

Initial investor response has been strong, with the retail portion of the IPO already booked 45% within the first few minutes of opening. Overall subscription currently stands at 13%.

Analysts have offered varied perspectives on the IPO. Ravi Singh, Chief Research Officer at Master Capital Services, views Meesho as a long-term execution story, emphasizing the company’s penetration into underserved markets and strong cash-flow discipline. “Meesho’s growth is different because it is still tapping into a part of India that is not fully penetrated by large e-commerce players,” Singh stated.

However, Abhinav Tiwari, Research Analyst at Bonanza, expressed caution, highlighting the company’s significant losses (Rs. 5,518 crore adjusted EBITDA losses in H1 FY26) and intense competition from established players like Amazon and Flipkart. Tiwari emphasized the uncertain path to sustainable profitability, despite recent positive free cash flow. “While the company achieved positive free cash flows recently, the path to sustainable profitability remains uncertain, with H1FY26 showing deteriorating contribution margins at 3.8% versus 5.6% in FY24. The company faces intense competition from established players Amazon and Flipkart while still burning capital on marketing and technology investments,” he said.

Ahead of the listing, unlisted shares of Meesho were trading at a Grey Market Premium (GMP) of over 44% above the IPO price, according to data from Investorgain, indicating positive market sentiment.

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