The IPO of Softbank-backed firm Meesho remained modest, with the issue subscribed 0.56 times so far on the first day of bidding. Retail investors drove most of the early traction, while institutional participation remained absent in the initial hours.
As of 12.18 pm, the retail portion has been subscribed 2.07 times, while the non-institutional investors (NIIs) portion stood at 0.65 times, and the qualified institutional buyers (QIBs) portion remained unsubscribed.
Meesho on Tuesday raised ₹2,439.54 crore from anchor investors, including SBI Mutual Fund, Tiger Global, ADIA, GIC, BlackRock, GIC, Fidelity, WCM investment, Goldman Sachs and Dragoneer.
The e-commerce firm aims to raise ₹5,421 crore through the IPO, which concludes on December 5. It has fixed a price band of ₹105-111 per share, valuing the company at ₹50,096 crore ($5.6 billion) at the upper end.
The IPO comprises of a fresh issue of shares worth ₹4,250 crore, and an OFS of 10.55 crore shares valued at ₹1,171 crore at the upper band.
The company will use the proceeds for investment in cloud infrastructure, marketing and brand initiatives, as well as funding inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.
Most analysts acknowledged the company’s strong position in the value-e-commerce segment, deep penetration in Tier-2 and Tier-3 markets, and its asset-light marketplace model, which has helped it scale rapidly. They noted that Meesho’s improving unit economics and declining losses make it a promising long-term growth story.
However, several brokerages also highlight risks such as intense competition, the company’s still-evolving path to profitability, and the need to sustain growth without heavy discounting.
Brokerages have largely issued a “subscribe for long term” stance rather than an aggressive “subscribe” for listing gains. Overall, brokerages see potential but recommend that investors approach the issue with realistic expectations and a long-term horizon.
Two other mainboard IPOs, which opened today, Aequs and Vidya Wires, were fully subscribed by mid-day, logging 1.37 times and 1.42 times subscription, respectively.
Published on December 3, 2025