Meesho IPO: From promoters' profits, issue objectives to financials - 10 key things to know from RHP before investing

Meesho, an e-commerce company, targets to raise ₹5,421 crore through its Initial Public Offering (IPO), which will begin subscription on December 3. Meesho IPO price band has been set in the range of ₹105-111 per share, giving Meesho a valuation of ₹50,096 crore (USD 5.6 billion) at the upper price band. Meesho announced last week that the public offering will conclude on December 5, with allocations for anchor investors scheduled for December 2. Meesho IPO GMP (grey market premium) today stands at ₹42. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Meesho share price was indicated at ₹153 apiece, which is 37.84% higher than the IPO price of ₹111. The Bengaluru-headquartered firm's first public offering will consist of a fresh share issue valued at ₹4,250 crore, along with an Offer For Sale (OFS) of 10.55 crore shares estimated at ₹1,171 crore at the upper price limit, bringing the total offering size to ₹5,421 crore. Meesho intends to use the funds raised for investment in cloud infrastructure, marketing and branding efforts, expanding through acquisitions and other strategic moves, as well as for general corporate needs. Meesho IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIBs), not more than 15% for non-institutional Investors (NIIs), and not more than 10% of the offer is reserved for retail investors. Tentatively, Meesho IPO's basis of allotment of shares will be finalised on Monday, December 8, and the company will initiate refunds on Tuesday, December 9. The shares will be credited to the demat accounts of allottees on the same day following the refund. Meesho shares are likely to list on the BSE and NSE on Wednesday, December 10. Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue. Meesho IPO - Promoters and how much will they earn from the issue Meesho’s Co-founder, Chairman, and CEO Vidit Aatrey, who possesses 47.25 crore shares amounting to an 11.15% stake, has emerged as a significant beneficiary. Acquired at an average price of merely ₹0.06 per share, his holdings are now assessed at ₹5245 crore at the peak of the price range—over 1800 times their prior value of approximately ₹2.84 crore. His co-founder, Whole-time Director, and CTO Sanjeev Kumar will also reap considerable rewards. Kumar owns 31.57 crore shares, equating to a 7.41% stake, bought at an exceptionally low average of ₹0.02 per share. With the updated valuation, his equity is now valued at ₹3504 crore, soaring from about ₹63 lakh, reflecting an incredible increase of nearly 5500 times. Meesho IPO - Other investors Early institutional investors are benefiting equally from this surge. Elevation Capital (previously known as SAIF Partners), which holds 57.95 crore shares corresponding to a 13.6% stake, entered Meesho at an average cost of ₹3.04 per share. Its previously valued holding of ₹177 crore has now skyrocketed to ₹6433 crore—indicating a rise of over 3500 times. Peak XV Partners, which owns 48.12 crore shares or an 11.3% stake at an average purchase price of ₹4.29 per share, is also expected to experience substantial financial increments. Their stake, once valued at ₹207 crore, now reaches an impressive ₹5342 crore, showing a multifold growth of nearly 2500%. The positive developments extend to other early investors as well. YC Continuity Fund, which holds 5.2 crore shares, or 1.22% of Meesho, entered at an average price of ₹1.02 per share. Its holding is currently valued at ₹576 crore, a remarkable increase from ₹5.3 crore, illustrating a rise of more than 10000 times. Venture Highway’s investment will increase to ₹175 crore from ₹73.5 crore, whereas Gemini Investments’ valuation will surge to ₹493 crore from just ₹8.3 crore prior to the revision of the price band. Meesho IPO - Peers As per the RHP, the company's listed peers are Eternal Ltd (with a P/E of 529.14), Swiggy Ltd, Brainbees Solutions Ltd (Groww), FSN E-Commerce Ventures Ltd (Nykaa) (with a P/E of 1,168.43), Vishal Mega Mart Ltd (with a P/E of 99.53), Trent Ltd (with a P/E of 100.87), and Avenue Supermarts Ltd (with a P/E of 98.43). Meesho IPO - Business The firm functions as a multi-faceted technology platform that enhances e-commerce in India by connecting four essential groups – consumers, sellers, logistics partners, and content creators. Their online marketplace, branded as Meesho, has become the largest in India based on the number of Placed Orders and Annual Transacting Users among e-commerce companies within the twelve months ending September 30, 2025, as reported by Redseer. Meesho IPO - Net Merchandise Value In FY25, Meesho linked more than 500,000 active sellers with 199 million annual active users, leading to 1.8 billion orders placed. The company's Net Merchandise Value (NMV) increased by 29% year-over-year to ₹29,988 crore in FY25, following a 21% rise in FY24. In the context of e-commerce, NMV denotes the total checkout value of orders that have been successfully delivered, including taxes. It serves as a fundamental indicator of platform vitality as it showcases the level of customer engagement and repeat usage, thus playing a crucial role in driving revenue, profit margins, and cash flow across the ecosystem. Meesho IPO - Business model The company runs an asset-light business model, avoiding the manufacturing or sale of private label products, ownership of product inventory, or logistics infrastructure, which enhances the capital efficiency of their platform in comparison to traditional retail models or other e-commerce strategies that rely on physical stores, warehousing, owned inventory, or dedicated logistics. Meesho IPO - Industry India's e-commerce market currently has a value of approximately ₹6 trillion (around US$70 billion) in gross merchandise value (GMV) and is anticipated to grow to between ₹15 and 18 trillion (US$174–214 billion), capturing 12–13% of the Indian retail market by the end of Fiscal 2030. As of Fiscal 2025, e-commerce penetration in non-electronics categories remains considerably lower than that of electronics, which stands at roughly 37%, signifying a significant potential for expansion. The penetration rates in non-electronic categories are about 2% in groceries, 19% in fashion, 19% in beauty and personal care, and 5% in other categories, which include pharmaceuticals, home and furniture, general merchandise, and jewelry. By taking advantage of this potential, non-electronics categories are expected to drive the growth of e-commerce in India over the next five years, accounting for 72–73% of the e-commerce market by Fiscal 2030P, up from approximately 64% in Fiscal 2025. Meesho IPO - Financials Meesho has narrowed its losses to ₹700.7 crore for the six months ending September 2025, a reduction from a loss of ₹2,512.9 crore in the same timeframe last year. During this period, revenue grew by 29.40%, reaching ₹5,577.5 crore, an increase from ₹4,311.3 crore. The company reported a net loss of ₹3,942 crore for FY25, mainly due to a one-time exceptional item, which included reverse flip tax and perquisite tax necessary for the company's shift to a public structure. Meesho - Key Risks Some of the key risks are as follows; A significant number of orders on Meesho are settled through cash on delivery (CoD). During the six-month periods ending September 30, 2025, and September 30, 2024, as well as in Fiscal years 2025, 2024, and 2023, the percentage of Shipped Orders made via CoD was 72.00%, 78.51%, 76.95%, 85.39%, and 88.71%, respectively. The reliance on CoD contributes to a lower success rate for deliveries and heightens operational inefficiencies and risks associated with managing cash. Sellers from Gujarat, Uttar Pradesh, and Delhi represented 15.70%, 15.87%, and 13.78% of our total Annual Transacting Seller base over the last twelve months ending September 30, 2025. This concentration by region poses specific risks, including potential challenges to business operations due to natural disasters, social unrest, or changes in regulations, all of which could negatively affect their network, fulfillment processes, and overall performance on the platform. Lock-in of equity shares allotted to anchor investors Half of the equity shares distributed to the anchor investors in the anchor investor segment will be subject to a lock-in period of 90 days from the allotment date, while the other half of the equity shares allocated to anchor investors in that same segment will be locked in for a duration of 30 days from the date of allotment. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.