Meesho IPO GMP Today: Here's What Grey Market Signals Ahead Of Dec. 3 Launch

E-commerce platform Meesho Ltd. is set to launch its much-awaited initial public offering (IPO) on Wednesday, December 3. The Bengaluru-based online marketplace competes with companies like Amazon and Flipkart to sell a range of products.

Within a decade of its launch, Meesho has turned into a household name in India, giving consumers access to a wide range of affordable products while offering sellers a low-cost platform to grow their businesses. Meesho Ltd., which became an India e-commerce heavyweight by selling Temu-like low-priced offerings, plans to deploy some of the proceeds from its $606 million initial public listing to penetrate smaller towns in the world’s biggest consumer market.

Ahead of its launch, the grey market premium for the mainboard IPO has been topping the 'Business and Finance' trending charts, indicating strong interest among investors (especially private market investors) who would gauge the performance of the public issue based on market sentiments. Although one must note that the grey market is unregulated (not governed by authorities like SEBI) and speculative, it can fluctuate wildly. Therefore, investors use it as a sentiment gauge, but not as a guaranteed prediction.

Here's all you need to know about the Meesho IPO including the latest grey market premium, price band, offer size and more.

The latest GMP for Meesho IPO was Rs 46.5 on December 3. With a price band cap of Rs 111, the estimated listing price for Meesho shares is Rs 157.5. This implies an expected gain of 41.89% per share.

The grey market premium for the Meesho IPO has increased by nearly 30% since the price band for the mainboard offer was announced.

Note: GMP does not represent official data and is based on speculation.

Meesho IPO comprises a fresh issue of shares worth Rs 4,250 crore, and an offer for sale of 175.7 million shares by existing investors.

The price band for the IPO has been set at Rs 105 to Rs 111 per share. The Meesho IPO lot size is 135 equity shares, with multiples of 135 equity shares thereafter.

Qualified Institutional Buyers (QIBs) will be offered not less than 75% of the total shares in the issue, making them the largest investor segment. Non-Institutional Investors (NIIs) are allocated up to 15% of the shares, while retail investors will receive not more than 10% of the total offering.

Kotak Mahindra Capital Company Ltd. is acting as the book-running lead manager, while Kfin Technologies Ltd. will serve as the registrar of the issue.

Vidit Aatry and Sanjeev Kumar are the promoters selling shareholders offloading stakes in the OFS segment. Peak XV Partners, Elevation Capital V Ltd., Venture Highway Series 1, Golden Summit Ltd., Y Combinator Continuity Holding I, LLC, Sarin Family India LLC and Gemini Investments are corporate selling shareholders selling stakes. In addition Man Hay Tam will also be selling a stake in the OFS.

Meesho’s IPO will remain open for subscription until Friday, December 5. The tentative allotment of shares is expected to be finalised on Monday, December 8. Following allotment, the IPO is scheduled to list on the stock exchanges on Wednesday, December 10. 

The company will use Rs 1,390 crore from the proceeds to invest for cloud infrastructure, in Meesho Technologies Pvt. Ltd its subsidiary, while Rs 480 crore will be used form payment of salaries of existing and replacement hires for the Machine Learning and AI and technology teams. The company will also use Rs 1,020 crore for expenditure towards marketing and brand initiatives in its subsidiary Meesho Technologies.

Founded in 2015, Meesho Limited is a multi-sided technology platform in India that connects consumers, sellers, logistics partners and content creators.

For the period ended March 31, Meesho reported a total income of Rs 9,900.90 crore, up from Rs 7,859.24 crore the previous year. Despite higher revenue, the company posted a substantial loss after tax of Rs 3,941.71 crore, compared to a loss of Rs 327.64 crore in the prior year. Ebitda improved slightly to a negative Rs 219.59 crore from negative Rs 230.15 crore a year earlier. 

Meesho’s IPO proceeds are proposed to be utilised for cloud infrastructure for its subsidiary, MTPL, salaries of existing and new hires in the technology teams supporting MTPL’s technology development. A portion of the proceeds will also be used for marketing and brand initiatives as well as general corporate purposes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

GMP Disclaimer: The final listing price is determined by the official price discovery mechanism on the stock exchange on listing day, which is influenced by official subscription data, anchor investor interest, and overall market conditions, not just the GMP.