Meesho's Rs 5,421.20-Crore IPO Opens: 'Subscribe' Says Motilal Oswal — Check Key Details

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Motilal Oswal Report

Meesho Ltd. launched its initial public offering today, 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.

The IPO comprises of fresh issue up to Rs 4,250 crore and an offer for sale (OFS) of Rs 1,171.2 crore, aggregating to a total issue size of Rs 5,421.2 crore at the upper price band.

The price range has been fixed at Rs 105 to Rs 111 per equity share, with a face value of Rs 1.

The shares of Meesho will be listed on both the National Stock Exchange and the BSE.

The bid lot is 135 shares, translating to a minimum retail application amount of Rs 14,985 at the upper price band. Retail investors can apply for up to 13 lots, amounting to Rs 1,94,805.

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.

Valuation:

With a unique zero-commission and asset light model, deep Bharat penetration, a defensible logistics flywheel, and a rapidly scaling ad/content commerce engine, Meesho is positioned as one of India’s most powerful long-term consumer-tech stories.

Its focus on affordability and frequency creates a structural moat that is difficult for traditional e-commerce players to replicate.

At 4.5x price/sales (Q2FY26 annualized and diluted), valuations look reasonable compared to other e-commerce players (average ~7x P/S); Hence, we recommend investors to ‘Subscribe’ to the issue.

Risk and Concerns

• A substantial portion of Meesho’s orders are cash-on-delivery. In Fiscals 2025, 2024 and 2023, 76.95%, 85.39% and 88.71% of shipped orders, respectively, were CoD. High CoD dependence lowers delivery success rates and adds operational inefficiencies and cash-handling risks.

• Failure to attract and retain both sellers and consumers could reduce product availability, weaken platform engagement, and diminish order volumes, thereby adversely affecting the business, financial condition, cash flows.

• Any disruption to the technology infrastructure or system availability could impair platform performance, reduce transaction volumes and harm the business. Past outages, including order failures in November 2024 and a CoD blockage in April 2025, highlight this risk.

• Meesho relies on Valmo and third-party logistics partners for order fulfilment, making its operations vulnerable to service disruptions, capacity constraints, contract non-renewals, weather-related delays and quality inconsistency.

• Meesho’s content commerce business growth depends on attracting and retaining content creators and affiliate partners. Misuse of the brand or harmful content could damage reputation, while creator attrition may undermine adoption and business outcomes.

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