Meesho IPO: Know price band, business model, latest GMP, analyst views & other key details

Meesho is set to launch its Rs 5,421.20 crore-initial public offering (IPO) on Wednesday, December 03, 2025. The e-commerce player shall be offering its shares in the range of Rs 105-111 apeice with a lot size of 135 equity shares until Friday, December 05, when the issue closes for bidding. The IPO of Meesho includes a fresh share sale of 38,28,82,882 equity shares worth Rs 4,250 and an offer-for-sale (OFS) of up to 10,55,13,839 equity shares worth Rs 1,171.20 crore. Last heard, Meesho was commanding a 40-42 apiece, suggesting a pop of around 36-39 per for the investors, above the given price band. Nirmal Bang Institutional Equities highlights Meesho’s zero-commission model, which relies on logistics fulfilment fees and advertising income. Over 53% of orders are from apparel and home categories, with a customer base predominantly comprising women from smaller cities. Operational efficiencies have enabled Meesho to reduce its average order value from Rs 337 in FY23 to Rs 274 in FY25, while order volumes increased from 1.0 bn to 1.83 bn. Contribution profit per order grew from Rs 5.5 in FY23 to Rs 8 in FY25, with adjusted EBITDA losses improving from –Rs 15.6 to –Rs 0.6 per order. Valmo, Meesho’s asset-light logistics network, has scaled rapidly, handling 1.8% of shipments in FY23, 48.1% in FY25 and 64.5% in H1FY26, leading to reduced logistics costs. Marketplace NMV rose from Rs 192.3 bn in FY23 to Rs 299.9 bn in FY25, a CAGR of 25%. Contribution profit increased from Rs 5.7 bn to Rs 14.8 bn in the same period. Nirmal Bang maintains a Neutral stance, noting the valuation appears broadly fair given near-term losses in FY26, softer operating cash flows, and longer-term 25% NMV CAGR potential. Nirmal Bang also notes Meesho’s optionality, as platform fees have not yet been introduced. With more than 2.5 bn orders expected in FY26, even a modest Rs 1–2/order platform fee could meaningfully lift revenue and profitability. The brokerage concludes, "While the long-term opportunity remains compelling, the near-term profitability trajectory warrants a balanced stance." For the six months ended on September 30, Meesho reported a net loss of Rs 700.72 crore with a revenue of Rs 5,857.69 crore. However, its loss stood at Rs 3,941.71 crore with a revenue of Rs 9,900.90 crore for the financial year 2024-25. At current valuations, it shall command a market capitalization little more than Rs 50,000 crore. Meesho does not hold inventory and relies on a broad seller base and third-party logistics partners, enabling rapid scale but limiting control over product quality, consistency, and customer experience—key challenges in value-led online retail. Technology investments—AI-led recommendations, vernacular support, and catalog tools—improve discoverability but do not fully offset structural challenges around counterfeit risks and seller churn, said Ventura Securities. "While free cash flow turned positive in FY25, sustainability hinges on strict cost discipline and maintaining marketing efficiency. Though the broader value e-commerce segment continues to grow, Meesho faces persistent competitive intensity, regulatory scrutiny on marketplace practices, and structural constraints on long-term margin expansion, making the path to durable profitability dependent on execution and tighter operational control," it added without rating the issue. Kotak Mahindra Capital Company, JP Morgan India, Morgan Stanley India, Axis Capital and Citigroup Global Markets India are the book running lead managers for the Meesho IPO and Kfin Technologies are is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on December 10, 2025. Meesho has built a defensible position in the value-first, low-AOV segment, targeting semi-urban and rural India where e-commerce penetration remains underdeveloped. Continued scale benefits and operating efficiencies - especially through its proprietary logistics platform, Valmo - are expected to drive further margin improvement, said Perumal Raja KJ, Associate Director (Research) at FundsIndia. "Meesho’s implied Market Capitalisation to Revenue from Operations (P/S equivalent) for FY25 is broadly aligned with the median of its listed peer set and at a discount to the peer average. While near-term earnings visibility remains limited, the long-term growth opportunity, strong market fit, and improving fundamentals support participation with a medium-term outlook," he said with a 'subscribe' tag.