Meesho IPO GMP: Smaller OFS To Trimmed Losses — What's Likely Behind Soaring Grey Market Estimates

Meesho Ltd. is set to launch its initial public offering on Wednesday, with the issue closing on Friday, according to the company’s red herring prospectus.

The IPO will include a mix of fresh issues of shares worth Rs 4,250 crore and an offer for sale of 10 crore shares by existing shareholders. The price band for the issue is set at Rs 105 to Rs 111 per share.

The IPO's last grey market premium is at Rs 46, as of 8:30 p.m. on Monday. With the price band of Rs 111, Meesh's IPO's estimated listing price is Rs 157, according to InvestorGain. The expected percentage gain per share is at 41.44%. This is also much higher than the 32.43% GMP gains that the IPO was trading with on Nov. 28.

Here are some of the possible reasons why retails investors are rushing to buy a slice of this story:

One of the primary reasons for the retail investor interest is the promoters reducing the OFS size by 40%, from 175.6 million shares indicated earlier to 105.5 million shares, worth Rs 1,171 crore. This reduction by early investors like Elevation Capital and Peak XV partners has signalled the promoters’ confidence in the company.

Apart from this, Meesho follows a technology-first strategy, limiting manual interventions in its operations. The company already adapted GenAI tools into its workflow to streamline code generation, development speed and to lower its turnaround time.

Its mobile app is designed with India-specific user behaviour in mind, and has the ability to scale while keeping the costs in check. Additionally, the company's unique business model does not compare with other newly listed consumer-tech companies.

The company narrowed losses to Rs 700.7 crore in the first half of fiscal 2026, which also came as an advantage in terms of financial health, making the counter more attractive to retail investors.

And finally, Meesho’s platform is designed to serve all consumer segments across India by making e-commerce "affordable, accessible, and engaging", as per their RHP. Meesho emphasises providing "Everyday Low Prices" to consumers.

Vidit Aatry and Sanjeev Kumar are the promoter 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 that are selling stake. In addition, Man Hay Tam will also be selling stake in the OFS.

The company will use Rs 1,390 crore from the proceeds to invest for cloud infrastructure in subsidiary Meesho Technologies Pvt., 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.