Meesho shares surge as much as 55% over IPO price on debut

Shares of Meesho Ltd. have listed at a premium over IPO price, indicating that India's appetite for new-age stocks continues unabated.

Given the strong Meesho IPO GMP and high growth potential, many analysts have recommended to ‘Subscribe for Long Term’ and look for potential listing gains. (Reuters)

On Wednesday, Meesho's share price rose as much as 54.95% over the IPO price of ₹111 apiece on the BSE even as the benchmark Sensex traded up to 0.25% higher. That after the Meesho IPO garnered ₹5,420 crore for the small-town e-commerce company.

The Meesho IPO was fully subscribed on the first day itself, offering shares at ₹111 apiece for a valuation of $5.6 billion. The shares were quoted in the grey market at 35% above the issue price on Tuesday, according to IPOWatch.in.

Meesho’s debut comes amid a rush by Indian companies to raise funds in the primary market, making India the fourth-biggest IPO venue in the world this year. The deals have surpassed last year’s peak, and the demand is particularly intense for tech startups, a segment investors see as critical to India’s growth.

Online marketplace Urban Company Ltd. and Billionbrains Garage Ventures Ltd., the parent of India’s top discount broker Groww, surged on their listing. Eyewear retailer Lenskart Solutions Ltd., however, had a volatile opening, triggering a debate about lofty valuations.

Meesho runs a marketplace which connects small manufacturers with value-conscious consumers across India’s smaller cities. Its IPO was subscribed more than 79 times despite a dramatic anchor allocation round that saw several major funds walk away, Bloomberg News reported earlier this month.

The company, which became an India e-commerce heavyweight by selling Temu-like low-priced offerings, plans to deploy some of the proceeds to penetrate smaller towns in one of the world’s biggest consumer markets. It has drawn customers by selling trendy clothes with dresses priced as low as $4.

The Bengaluru-headquartered firm reported a loss of ₹3,940 crore on revenue of about ₹9,400 crore for the fiscal ended 31 March 2025. Investors have largely shrugged off losses at listing-bound startups’ in recent years, focusing on their growth potential.