Meesho's initial public offering launched with remarkable success, achieving full subscription on its opening day driven by robust retail demand. By the end of trading, the $605.2 million issue was oversubscribed 2.35 times, indicating strong investor confidence in the e-commerce platform. This enthusiastic reception sets a positive tone for the company's highly anticipated public market debut.
Robust Demand Led by Retail Investors
The retail investor segment led the charge, with their allocated portion being subscribed 3.24 times by mid-afternoon on the first day. Non-institutional investors also demonstrated significant interest, subscribing their quota 1.17 times, showcasing broad-based appeal. In contrast, qualified institutional buyers showed a more measured response with 39% subscription, a common trend on the opening day of bidding.
IPO Structure and Financial Overview
The public offering comprises a fresh issue of shares worth $474.5 million and an offer for sale of over $1.1 million shares by existing shareholders. The price band for the issue has been fixed between $1.17 and $1.24 per equity share. This structure aims to both raise new capital for the company's expansion and provide a partial exit for early investors.
Despite its growth, the company reported a consolidated net loss of $78.2 million on sales of $622.7 million for the quarter ending September 30, 2025. However, Meesho has demonstrated strong platform engagement, with its net merchandise value per seller growing at a notable CAGR. This highlights the company's focus on scaling its operations while navigating the path toward future profitability.
Strategic Use of Capital for Growth
Meesho has outlined a clear strategy for deploying the net proceeds from the fresh issue to fuel its next phase of growth. A significant portion, $155.2 million, is earmarked for enhancing cloud infrastructure, while $53.5 million will fund talent acquisition in technology and AI. Another $113.9 million is allocated for marketing and brand-building to expand its market presence.
Anchor Investment and Allocation Scrutiny
Ahead of the public offering, Meesho secured $272.3 million from 125 anchor investors, signaling strong institutional confidence. Notably, early backer Tiger Global participated in the anchor round, acquiring a 1.9% allotment and reaffirming its support for the company. This pre-IPO commitment from established investors provided a solid foundation for the public issue.
The anchor round was not without contention, as reports highlighted discontent among some institutional investors over the allocation process. SBI Mutual Funds reportedly received over 20% of the anchor book, sparking concerns about potential preferential treatment. This development introduced a layer of scrutiny to an otherwise successful pre-IPO fundraising effort.
With bidding set to close on December 5, Meesho's IPO has already demonstrated significant market appeal, particularly from the retail segment. The strong subscription figures underscore investor belief in its growth story, though the company's financial performance and the anchor allocation will remain key points of observation. The market now awaits the share listing next week to gauge its long-term reception.