Meesho IPO Opens On December 3 — Should You Bid? Read Nirmal Bang's Report For Key Issue Details

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Nirmal Bang Report

Meesho Ltd. will launch its initial public offering on December 3 and the offer will close for subscription on Dec. 5. An e-commerce platform has fixed the price band in the range of Rs 105 to Rs 111 per equity share.

Meesho is a mainboard IPO that will raise Rs 5,421.20-crore. The IPO comprises of fresh issues of shares worth Rs 4,250-crore and an offer for sale worth Rs 1,171.20-crore.

Meesho's shares will be listed on both the National Stock Exchange and the BSE.

Kotak Mahindra Capital Company Ltd., J.P. Morgan India Private Ltd., Morgan Stanley India Company Private Ltd., Axis Capital Ltd., Citigroup Global Markets India Private Ltd. are the book running lead managers for the public issue while KFin Technologies Pvt. Ltd. is the registrar to the offer.

Object of the issue:

• Investment for cloud infrastructure in Meesho Technologies Private Ltd., a subsidiary.

• Payment of salaries for existing and replacement hires in the Machine Learning, AI, and technology teams for AI and technology development undertaken by MTPL.

• Investment in MTPL for expenditure towards marketing and brand initiatives.

• Funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

As Meesho approaches its IPO with a fresh issue of Rs 4,250-crore and an offer-for-sale of Rs 1,171.20-crore, the proposed valuation of Rs 51,500 crore (fully diluted basis) implies a 5.3-5.5x FY25 Price-to-Sales multiple.

We have a Neutral stance, as the valuation appears broadly fair when weighed against the company’s near-term increase in FY26 losses, softer operating cash flows, and the longer-term 25% NMV CAGR potential.

That said, we see structurally strong optionality in Meesho’s model — the platform has not yet implemented any platform fees, and with more than 2.5 billion of orders expected in FY26, even a modest Rs 1–2/order platform fee could meaningfully lift up revenue and profitability.

Additionally, Meesho’s strong positioning in India’s value conscious segment, deep penetration across Tier-II and Tier-III markets, and its scale in unbranded categories provide a solid foundation for sustained growth.

Overall, while the long-term opportunity remains compelling, the near-term profitability trajectory warrants a balanced stance.

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.