- Meesho Ltd. will launch its IPO on Dec 3, closing on Dec 5 with a price band of Rs 105-111
- The IPO includes Rs 4,250 crore fresh shares and 10 crore shares offered by existing shareholders
- Proceeds will fund cloud infrastructure, salaries for AI teams, and marketing initiatives in Meesho subsidiary
Meesho Ltd. is set to launch its initial public offering (IPO) on Dec. 3, with the issue closing on Dec. 5, 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.
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 Investmets are corporate selling shareholders that are selling stake. In addition Man Hay Tam will also be selling stake in the OFS.
Kotak Mahindra Capital Company Ltd., JPMorgan India Pvt., Morgan Stanley India Co., Axis Capital Ltd. and Citigroup Global Markets India Pvt. are the book-running lead managers for the issue and KFin Technologies Ltd. will be the registrar of the issue.
The allotment of shares to IPO investors will be done tentatively on Dec. 8, and it will be credited to the demat account will be done on Dec. 9. Sudeep Pharma will list on the BSE and NSE on Dec. 10.
IPO Details
Open date: Dec. 3
Close date: Dec. 5
Price Band: Rs 105 to Rs 111 per share
Allotment date: Dec. 8
Listing date: Dec. 10
OFS: 1,171.20 crore
Fresh issue: Rs 4,250 crore
Minimum bid: Lot size of 135 shares
Use Of Proceeds
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.
Meesho GMP Today
The grey market premium of Meesho is Rs 42 on Monday, Dec. 1, as per data on Investorsgain website. The GMP indicated a listing price of Rs 153 and a listing premium of 37.84%.
Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.
Business
Meesho, an online marketplace that is popular in smaller Indian cities, joins a growing list of companies tapping into India's booming IPO market.
The company'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. Combined with a zero-commission model, this approach reduces the average cost charged to sellers and allows Meesho to offer a wide assortment of products, including low-cost unbranded items, regional brands, and national brands.
Financial Performance
Meesho's revenue from operations increased to Rs 9,389.9 crore in fiscal 2025 from Rs 7,615 crore in fiscal 2024. Loss for the period also saw an uptick to Rs 3,942 crore for the financial year ended March 2025 as compared to Rs 3,2763 crore in the year-ago period.
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