Meesho IPO opens tomorrow (Dec 3):Brokerages see strong long-term potential

Meesho IPO: Market Watchers Anticipate Strong Long-Term Potential

Meesho's Initial Public Offering Sparks Keen Interest Among Market Watchers

Meesho Ltd's upcoming initial public offering (IPO) has generated significant interest among market watchers, as many anticipate strong long-term potential from the rapidly expanding e-commerce platform.

SBI Securities Issues Subscribe for Long-Term Investment Horizon Recommendation

• Large and growing user base: Meesho's user base is expected to drive long-term growth.
• Technology-first business model: Meesho's focus on technology will continue to enhance its competitive edge.
• Improving cash flows: Meesho has reported positive free cash flow over the past two financial years.

Meesho IPO Details

• IPO size: ₹5,421 crore
• Price band: ₹105-111 per share
• Valuation: ₹50,096 crore ($5.6 billion) at the upper end
• Market lot size: 135
• IPO opening date: December 3, 2025
• IPO closure date: December 5, 2025

Meesho's Plans for IPO Proceeds

• Investment in cloud infrastructure: Meesho plans to utilise proceeds to enhance its technology infrastructure.
• Marketing and brand initiatives: Meesho aims to boost its brand presence through marketing initiatives.
• Funding inorganic growth: Meesho plans to fund inorganic growth through acquisitions and other strategic initiatives.
• General corporate purposes: Meesho will utilise proceeds for general corporate purposes.

Brokerages Highlight Scale, Tech Strengths and Profitability Challenges

Brokerages such as SBI Securities have highlighted Meesho's scale, tech strengths, and profitability challenges. While Meesho's scale and tech-driven approach are key differentiators, the path to profitability remains a key monitorable.

Key Risks and Vulnerabilities

• Customer and seller retention: Meesho faces challenges in retaining customers and sellers.
• Operational dependence on third-party logistics partners: Meesho's dependence on third-party logistics partners poses operational risks.
• Rising competition: Meesho faces intense competition from established e-commerce giants and offline retailers.
• Technology infrastructure outages: Meesho's technology infrastructure is vulnerable to outages.
• Operational inefficiencies: Meesho faces operational inefficiencies linked to cash-on-delivery orders.