Meesho makes strong debut, shares list at 45% premium over IPO price

One of the most awaited ecommerce IPOs of this year has reached its culmination. Meesho's shares listed at a 45% premium to its issue price of Rs 111, taking the total market cap of the ecommerce platform to Rs 72,751 crore.

The stock opened at Rs 161.20 per share on the BSE, signalling sustained investor appetite for Meesho’s Bharat-focused ecommerce model.

Meesho’s debut mirrors the recent listing gains across new-age companies. Investment platform Groww listed at a 12-14%premium, while digital payments firm Pine Labs debuted at a 9.5% gain over its issue price. Edtech company PhysicsWallah saw a more than 30% premium on listing, making it one of the stronger market debuts among recent tech offerings.

In contrast, omnichannel eyewear retailer Lenskart had a muted market entry, with its shares opening below the issue price on both exchanges amid valuation concerns.

Vidit Aatrey-led Meesho's strong listing follows robust demand for the company’s initial public offering, which was fully subscribed on day one, driven largely by retail investors. It was eventually oversubscribed 79.2 times by the close of bidding. The retail portion alone was subscribed more than three times on the first day, even as institutional investors entered in large numbers on the final day.

Qualified institutional buyers emerged as the largest contributors by the end of the issue, subscribing over 120 times their allotted quota, after a muted start during the anchor and early bidding phases. At the top end of the price band, the IPO valued Meesho at about Rs 50,096 crore, with the issue comprising a Rs 4,250-crore fresh issue alongside a pared-down offer-for-sale.

Meesho’s IPO pricing had deliberately left room for an upside. The company had set a price band of Rs 105–111, valuing the business at $5.9 billion, at the upper end, below its earlier target of $7 billion–8 billion.

Ahead of the offering, Chief Executive Vidit Aatrey had said that the company wanted to attract the “right” long-term shareholders and ensure the stock traded well post listing.