[Update] Meesho IPO: Issue Oversubscribed 7.97X On Day 2

 Update | December 4, 19:55 IST

Ecommerce major Meesho’s IPO ended its second day on a high. At the end of the day, the IPO was oversubscribed by 7.97X, receiving bids for 221.61 Cr shares against the total offering of 27.79 Cr shares. 

Non-institutional investors (NIIs) showed the highest optimism for the company’s IPO, bidding for 70.30 Cr against the 7.65 Cr shares in the offering. This translates to an oversubscription of 9.18X.

Following NIIs, retail investors oversubscribed their quota by 9.14X, bidding for 46.62 Cr shares against the 5.1 Cr shares reserved for them.

Meanwhile qualified institutional buyers (QIBs) placed bids for 104.69 Cr shares against the 15.04 Cr shares reserved for them, translating into an oversubscription of 6.96X. 

Original | December 4, 14:41 IST

Ecommerce major Meesho’s IPO continued to see steady investor interest and was oversubscribed 5.23X as of 14:18 IST. It received bids for 145.20 Cr shares against 27.79 Cr shares on offer. 

Retail investors led the charge, with the portion reserved for them oversubscribed 7.82X. They placed bids for 39.90 Cr shares against 5.1 Cr shares reserved. 

Non-institutional investors (NIIs) bid for 49.61 Cr shares against 7.65 Cr shares on offer, translating to 6.48X oversubscription. 

Meanwhile, the portion reserved for qualified institutional buyers (QIBs) was oversubscribed 3.72X, getting bids for 55.91 Cr shares against 15.03 Cr shares on offer. 

The ecommerce unicorn’s IPO comprises a fresh issue of INR 5,421 Cr and an OFS component of 10.6 Cr shares. It has set a price band of INR 105 to INR 111 for the issue, targeting a valuation of INR 50,000 Cr (about $5.5 Bn) at the upper end of the spectrum. The IPO will close tomorrow, with the company’s shares expected to list on the exchanges on December 10.

As part of the OFS component, founders Vidit Aatrey and Sanjeev Kumar are looking to sell up to 1.6 Cr shares each. Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator Continuity are among the other investors selling shares. 

Meesho plans to utilise the proceeds from the fresh issue for the following purposes:

• INR 1,390 Cr will be invested towards cloud infrastructure for subsidiary Meesho Technologies INR 480 Cr will be utilised for payment of salaries for its existing and replacement hires for machine learning, AI and technology teams to shore up its tech stack
• INR 1,020 Cr will be infused in Meesho Technologies for marketing and brand initiatives 
• The remaining amount will be used to fund inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes. 

On the financial front, Meesho reported a consolidated net loss of INR 701 Cr in the first half (H1) of the fiscal year 2025-26 (FY26), down 72% from INR 2,513 Cr in the year-ago period. Its top line grew 29% to INR 5,578 Cr in the six-month period ended September 2025 from INR 4,311 Cr in H1 FY25.

For the full year FY25, the company incurred a loss of INR 3,914.7 Cr, up almost 12X from INR 327.6 Cr in the previous fiscal. Operating revenue grew 23% to INR 9,389.9 Cr in FY25 from INR 7,615.1 Cr in the year-ago period.

Earlier this week, the Central Consumer Protection Authority (CCPA) imposed a penalty of INR 10 Lakh on Meesho in its final order pertaining to the sale of walkie-talkies on the ecommerce unicorn’s platform without mandatory regulatory disclosures or approvals.

Meesho Has Raised $1.6 Bn Since Inception

Source: Inc42

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