Meesho IPO Day 3: Issue Oversubscribed 17X So Far

SUMMARY

The non-institutional investors’ (NIIs) category led with an oversubscription of 24.09X, drawing bids for 118 Cr shares

Retail investors placed bids for 71.4 Cr shares as against 5.10 Cr shares on offer, translating to 13.87X oversubscription

The ecommerce unicorn has set a price band of INR 105 to INR 111 per share for its public issue and is expected to debut on the stock exchanges on December 10

Ecommerce unicorn Meesho’s IPO continued to see strong investor demand on the final day of bidding, with the issue getting oversubscribed 16.60X as of 12:30 IST. The public offering received bids for 27.79 Cr shares against 1.67 Cr shares on offer.

The non-institutional investors’ (NIIs) category led with an oversubscription of 24.09X, drawing bids for 118 Cr shares against 7.65 Cr shares on offer.

Within this segment, high-ticket bidders dominated. NIIs bidding above INR 10 lakh saw their quota getting oversubscribed 25.66X, while the portion reserved for NIIs bidding between INR 2 Lakh and INR 10 Lakh was oversubscribed 20.96X.

Retail investors placed bids for 71.4 Cr shares as against 5.10 Cr shares on offer, translating to 13.87X oversubscription.

Meanwhile, qualified institutional buyers’ (QIBs) quota was oversubscribed 13.84X. They placed bids for 208.1 Cr shares against 15 Cr shares reserved for them.

The ecommerce unicorn has set a price band of INR 105 to INR 111 per share for its public issue. At the upper end of the price band, it is targeting a valuation of INR 50,000 Cr (about $5.5 Bn). The IPO comprises a fresh issue of INR 5,421 Cr and an offer for sale of 10.6 Cr shares. Meesho’s shares are expected to make their debut on the stock exchanges on December 10.

As part of the OFS, cofounders Vidit Aatrey and Sanjeev Kumar are set to offload up to 1.6 Cr shares each, while investors including Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator Continuity are also offloading shares.

Earlier this week, the company raised INR 2,439.5 Cr from anchor investors, including 14 domestic mutual funds like SBI, Aditya Birla Sun Life, Axis, HSBC, among others. The Government of Singapore, Tiger Global, BlackRock, Fidelity, and Morgan Stanley were among the other investors who participated in the round.

The company plans to deploy the proceeds from the fresh issue for the following purposes:

INR 1,390 Cr will be channeled into cloud infrastructure for its subsidiary Meesho Technologies
INR 480 Cr has been earmarked for salary payments for existing and replacement hires across its machine learning, AI, and technology teams.
INR 1,020 Cr will be infused into Meesho Technologies to drive marketing and brand-building efforts.
The remaining capital will go towards acquisitions, other strategic initiatives, and general corporate purposes.

On the financial front, Meesho reported a consolidated net loss of INR 701 Cr in H1 FY26, narrowing significantly from INR 2,513 Cr in the year-ago period. Operating revenue rose 29% to INR 5,578 Cr during the first half of FY26 from INR 4,311 Cr in H1 FY25.

For the full year FY25, the company posted a loss of INR 3,914.7 Cr, almost 12X higher than INR 327.6 Cr in the previous fiscal. Operating revenue increased 23% to INR 9,389.9 Cr from INR 7,615.1 Cr in FY24.