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Meesho made a beardown debut astatine the Dalal Street connected Wednesday, trading astatine Rs 161, astatine a premium of 46% implicit the IPO price.This came aft the e-commerce platform's Rs 5,421.20 crore archetypal nationalist offering that ended with an wide subscription of 79 times.
The effect has placed the e-commerce institution among the astir keenly followed tech listings this year.Meesho was trading astatine Rs 162 connected the NSE, up Rs 51 from the contented price. On the Bombay Stock Exchange, the stock was trading astatine Rs 161, up 45% from the contented price.
Meesho IPO
The IPO, which opened connected December 3 and closed connected December 5, offered 27.79 crore shares done a operation of a caller contented of astir 38.29 crore shares worthy Rs 4,250 crore and an connection for merchantability of 10.55 crore shares.
By the extremity of the bidding period, exchanges had received applications for 2,197 crore shares, a standard of request driven mostly by organization participation, ET reported. The QIB class recorded the highest interest, with 18,07,17,42,600 bids for conscionable implicit 15 crore shares, pushing its subscription to 120.18 times. Non-institutional investors subscribed 38.16 times, portion retail request reached 19.08 times.
Share allotment volition beryllium completed connected Monday, 8 December, followed by the recognition of shares to demat accounts connected Tuesday. Grey-market quotes implicit the play showed optimism. On December 7, the premium stood astatine Rs 42.5, pointing to a imaginable listing astir Rs 153.5 compared with the Rs 111 precocious terms band, a summation of 38.29%. Earlier successful the week, connected 4 December, the premium was Rs 45, which implied a listing estimation of Rs 156, oregon a premium of 40.54%.Annual transacting users roseate 46% betwixt FY23 and FY25, with 19.9 crore users placing orders successful FY25. Of these, 17.4 crore came from extracurricular the apical 8 cities.
Outlook
Prasenjit Paul, Equity Research Analyst astatine Paul Asset and Fund Manager of the 129 Wealth Fund, told ET that tier-2 and tier-3 cities person a coagulated maturation imaginable for the level arsenic request continues to rise. However, helium further noted that profitability successful these markets is inactive reasonably new, and some its sustainability and the comparatively higher valuations request cautious monitoring.InCred besides assigned a Subscribe standing for short-term gains, citing charismatic valuations astatine 5.3x marketplace cap-to-sales. However, it warns that achieving sustained EBITDA breakeven is inactive immoderate mode off, fixed ongoing challenges successful supply-chain optimisation, scaling monetisation and maintaining assertive pricing.
Financial scoreboard
Meesho reported FY25 gross of Rs 9,390 crore, a 23.3% summation from the erstwhile year, portion continuing to constrictive EBITDA losses.
The institution posted an adjusted nonaccomplishment of Rs 2,595 crore for FY25. Analysts constituent to improving indicators, with ICICI Direct noting that Meesho has shown beardown operating leverage and delivered affirmative escaped currency travel for 2 consecutive years, with LTM FCF astatine Rs 581 crore arsenic of H1FY26, according to ET. Operational metrics amusement accelerated expansion. Order volumes climbed from 102 crore successful FY23 to 183 crore successful FY25, supported by the platform’s “everyday debased price” strategy. Contribution margins accrued by 200 ground points to 4.9% implicit 2 years. The company’s logistics arm, Valmo, combined with a rising stock of prepaid orders and a zero-commission seller model, enabled it to big 15.4 crore regular progressive merchandise listings successful H1FY26. Risks, however, remain, including dependence connected cash-on-delivery orders, which heightens fraud and cancellation issues, and competitory unit crossed fulfilment, find and affordability.(Disclaimer: Recommendations and views connected the stock market, different plus classes oregon idiosyncratic concern absorption tips fixed by experts are their own. These opinions bash not correspond the views of The Times of India)
