Meesho IPO GMP Surges 40% on Day 1; Issue Subscribed 63% Within Hours; Should You Apply?

The Meesho IPO opened to strong investor demand on December 3, with the grey market premium (GMP) jumping nearly 40% on the very first day and the subscription status reaching 63%, or 0.63 times, within just three hours of bidding.

Meesho IPO Subscription Status on Day 1

According to the latest subscription data, the Rs. 5,421.20 crore public issue saw a sharp pickup in demand. The total subscription so far reached 0.64 times, while the retail category was subscribed 2.37 times. The NII category was bid 0.77 times, while the QIB category has not seen any subscription today.

Meesho IPO GMP Today

The Meesho IPO GMP surged to Rs. 44 on December 3, and with the upper price band at Rs. 111, the market is expecting the listing price to be Rs. 155, with a potential 39.64% listing gain if sentiment sustains.

Meesho IPO Details

The Meesho IPO is worth Rs. 5,421.20 crore and is structured as a mix of fresh equity and an offer for sale. The company will raise Rs. 4,250 crore through a fresh issue of 38.29 crore shares to strengthen its balance sheet and support future expansion. Additionally, existing shareholders will offload 10.55 crore shares through an OFS worth Rs. 1,171.20 crore, allowing early investors to partially exit. The price band for the Meesho IPO is set at Rs. 105 - Rs. 111 per share

The IPO opened for subscription on December 3 and will close on December 5th. The basis of allotment is scheduled for December 8th, followed by a tentative listing on December 10th on both BSE and NSE.

Should You Subscribe to the Meesho IPO?

Brokerage sentiment is moderately positive, as 4 out of 8 brokerages who reviewed the IPO have issued a "Subscribe" rating.

SBI Securities, in its IPO note, said, "Meesho operates on a zero-commission model and primarily generates revenue through logistics services and advertisements. While the company remains loss-making on a net basis, it has begun generating positive free cash flows over the last two years."

"At the upper price band of ₹111, Meesho trades at a price-to-sales ratio of 5.3x FY25 on post-issue capital. The company's path to sustainable profitability will be a key monitorable as it continues to invest heavily in technology and marketing. We recommend investors SUBSCRIBE for a long-term horizon."

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