Technology platform Meesho raised Rs 2,440 crore from 125 anchor investors on Tuesday ahead of its initial public offering (IPO) which opens on Wednesday, December 3. The company allocated 21.98 crore shares at the upper price band of Rs 111 apiece. Out of the 21.98 crore shares, 9.37 crore shares accounting for 42.63% of the total quota were allocated to 14 domestic mutual funds through a total of 52 schemes.
The anchor tranche included participation from leading global institutional investors including GIC, Fidelity, BlackRock, Morgan Stanley Investment Management (Counterpoint Global), Goldman Sachs Asset Management and WCM Investment Management along with largest domestic mutual funds like SBI Mutual Fund, Axis Mutual Fund and Birla Mutual Fund. The allocation also went to globally prominent technology-focused investors such as Dragoneer Investment Group.
The anchor book saw demand exceeding Rs 80,000 crore, translating to nearly 30 times oversubscription.
Earlier today a controversy erupted with ET reporting a setback in the anchor book. The report said that several major investors pulled out when the Indian e-commerce firm was said to have allocated about a quarter of the shares in this tranche to SBI Funds Management Pvt.
Also Read: Meesho faces investor protest over anchor allotment to SBI Funds
Among the SBI funds that received allocations were The SBI Innovative Opportunities Fund, SBI Consumption Opportunities Fund, SBI Resurgent India Opportunities Scheme.
The Meesho IPO is generating significant buzz in the grey market, with its grey market premium (GMP) hovering around Rs 50-51, hours before its opening. This translates to an expected listing gain of nearly 46% at Rs 162.
A grey market premium (GMP) reflects the unofficial price at which IPO shares are being traded among investors before listing. Though not regulated by exchanges, GMP offers a market-based indicator of potential demand and pricing expectations.
A strong GMP generally suggests robust investor interest and the possibility of a positive listing, although it is not a guarantee of performance.
Meesho IPO details and key dates
The Meesho IPO will open for subscription from December 3 to December 5, with the price band fixed at Rs 105–Rs 111 per equity share. The lot size for retail investors is 135 shares, amounting to a total investment of Rs 14,985 per lot at the upper price band.
Allotment is expected to be finalized by December 8, followed by refunds and demat credits on December 9. Listing is scheduled for December 10, on the mainboard exchanges.
What analysts say about Meesho IPO?
According to analysts, Meesho has carved a strong position in India’s value-focused e-commerce space, backed by improving unit economics, growing user engagement, and an expanding seller base.
While the company’s near-term profitability remains under pressure due to restructuring and operational costs, its implied FY25 price-to-sales ratio of 5.5x is seen as reasonable compared to peers.
Perumal Raja K. J. of FundsIndia believes Meesho presents a medium-term opportunity for investors who are comfortable with early-stage platform risks.
India’s e-commerce sector itself is projected to grow rapidly, with the retail market expected to expand from Rs 83 lakh crore to Rs 135 lakh crore by FY30. Non-electronics penetration remains low, offering considerable headroom for Meesho to scale.
About Meesho and financials
Meesho reported robust growth in FY25, with revenue rising from Rs 5,730 crore in FY23 to Rs 9,390 crore, driven by higher order volumes, improved seller services, and better fulfilment efficiency. Despite temporary losses in Q1 FY26 due to restructuring and ESOP expenses, the company reported positive free cash flow for both FY24 and FY25.
User engagement also surged, with annual transacting users reaching 234.2 million as of September 2025, up from 175 million a year earlier. Order volumes increased to 1,261 million, while the number of active sellers rose to 706,471.
Lead managers for Meesho IPO
The IPO is being managed by a consortium of top investment banks, including Kotak Mahindra Capital, J.P. Morgan, Morgan Stanley, Axis Capital, and Citigroup. KFin Technologies is serving as the registrar to the issue.
Trading is expected to begin on December 10, pending regulatory approvals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)