A driving e-commerce platform, Meesho, is coming up with Meesho IPO with an offering of ₹5,421.20 crores. The issue is a combination of fresh issue of 38.29 crore shares aggregating to ₹4,250.00 crores and offer for sale of 10.55 crore shares aggregating to ₹1,171.20 crores
Know More About The Company
Meesho, established in 2015, is a multi-sided technology platform driving ecommerce in India by bringing together key stakeholders like consumers, sellers, logistic partners and content creators. The company is known for its affordable products while offering sellers a low-cost platform to grow their businesses.
As of TTM Sep’25, the company’s marketplace, “Meesho,” has become one of India’s biggest online marketplaces in terms of orders placed and annual transactions. As of TTM Sep’25, the company was able to interact with approximately 7 lakh suppliers and approximately 23 cr consumers annually.
Issue Details & Obective
| Particulars | Details |
|---|---|
| Date of Opening | 3rd December 2025 |
| Date of Closing | 5th December 2025 |
| Price Band (Rs) | 105 – 111 |
| Offer for sale at upper price band (Rs cr) | 1,171.2 |
| Fresh Issue (Rs cr) | 4,250.0 |
| Issue Size at upper price band (Rs cr) | 5,421.2 |
| No. of shares issued at upper price band | 48,83,96,722 |
| Face Value (Rs) | 1.0 |
| Post Issue Market Cap (Rs cr) | 47,618 – 50,096 |
| Bid Lot | 135 shares and multiples thereof |
| QIB shares | 75% |
| Retail shares | 10% |
| NII shares | 15% |
| Particulars | Estimated Utilization (Rs cr) |
|---|---|
| Cloud infrastructure investment in MTPL | 1,390.0 |
| Marketing & brand initiatives (MTPL) | 1,020.0 |
| Salaries for ML/AI & Tech teams (MTPL) | 480.0 |
| Inorganic growth & corporate purpose | To be finalized |
| Net Proceeds | 4,250.0 |
Meesho Ltd. Financial Information
Meesho has a zero-commission business model and makes most of its money from advertising and shipping services.
Although the corporation is incurring losses on a net basis even after correcting for unusual things, it has started to create positive free cash flows over the last two years. Additionally, Meesho recorded tax expenses for the business combination of Rs 2,487 cr and Rs 72 cr in FY25 and 1HFY26, respectively. As this incident is complete, there would likely be no unusual tax expense going ahead, which should assist in decreasing losses. At the upper price band of Rs 111, Meesho is valued at the FY25 Price-to-Sales ratio of 5.3x on post-issue capital. Meesho’s route to long-term profitability will be closely watched going ahead, particularly as it keeps making investments.
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 1HFY26 |
|---|---|---|---|---|
| Revenue from operations | 5,735 | 7,615 | 9,390 | 5,578 |
| EBITDA | (1,804) | (494) | (579) | (693) |
| EBITDA Margin (%) | (31.5) | (6.5) | (6.2) | (12.4) |
| Adj. EBITDA | (1,694) | (230) | (220) | (552) |
| Adj. EBITDA Margin (%) | (29.5) | (3.0) | (2.3) | (9.9) |
| Adj. PAT | (1,672) | (315) | (2,595) | (563) |
| Adj. PAT Margin (%) | (29.2) | (4.1) | (27.6) | (10.1) |
| Contribution Margin (% NMV) | 2.9 | 5.6 | 4.9 | 3.8 |
| RoE (%) | (67.6) | (14.1) | (179.5) | – |
| RoCE (%) | (67.6) | (13.8) | (7.0) | – |
| P/E (x)* Pre-issue P/E based on upper price band | (27.4) | (145.8) | (17.7) | – |
Income Statement
The company reported a net loss of ₹2,595 crore in FY25, but the majority of it comes from an exceptional(one-time) item which cost ₹1,346 crores. On the more standardised format, the company reported adjusted EPS of (6.21) for the six-months period ended September 30, 2024.
Cash Flow Statement
For the year ending on 31st March 2025, the company reported a new loss of ₹1,001.183 crores before adjustment of working capital, while considering the change in working capital, the number turned positive to ₹575.9 crore. Now, this might look like a very positive number, but let’s break it down.
Taking a breakdown of movement in working capital majority of it, around ₹1,370 crores, comes from an increase in other liabilities and provisions, which may not be sustainable for the future. While other sustainable working capital changes, like trade payable/receivable, don’t show much positive gains.
In cash flow from investing(CFI), the company reported a net negative figure of ₹2,635.25 crore, year ending FY2025, but taking the numbers till 30th September, the net positive CFI reported was ₹968 crore, while the majority came from the proceeds from the sale of investments
| Particulars | FY23 | FY24 | FY25 | 1HFY26 |
|---|---|---|---|---|
| CFO | (2,308) | 220 | 539 | (851) |
| CFI | 498 | (166) | (2,635) | 968 |
| CFF | (12) | (11) | 2,105 | (9) |
| Free Cash Flow | (2,346) | 185 | 516 | (865) |
| Adj. FCF | (2,336) | 200 | 591 | 582 |
While the free cash flow looks positive but just two years back it was ₹(2,346) crore, which raises a question of the sustainability of earnings and free cash flow, which we believe will be negative in the upcoming years.
Peer Comparison (FY25)
| Particulars | Meesho | Zomato | Swiggy | Nykaa |
|---|---|---|---|---|
| CMP (Rs) | 111 | 301 | 378 | 267 |
| Sales | 9,390 | 20,243 | 15,227 | 7,950 |
| GMV | 50,312 | 74,715 | 46,549 | 15,604 |
| Contribution Profit | 1,484 | 4,045 | – | 1,524 |
| EBITDA | (579) | 637 | (2,787) | 477 |
| Adj Net Profit | (2,595) | 527 | (3,129) | 66 |
| Market Cap (Rs cr) | 50,096 | 2,90,331 | 94,322 | 76,523 |
| EV | 45,383 | 2,86,717 | 91,051 | 77,268 |
| EBITDA Margin | (6.2%) | 3.1% | (18.3%) | 6.0% |
| Contribution Margin % GMV | 2.9% | 5.4% | – | 9.8% |
| Adj Net Profit Margin | (27.6%) | 2.6% | (20.5%) | 0.8% |
| RoE | (50.9%) | 1.7% | (30.6%) | 5.1% |
| RoCE | (2.0%) | 2.8% | (29.3%) | 10.4% |
| P/E | (19.3) | 550.9 | (30.1) | 1,158.0 |
| EV/EBITDA | (78.4) | 450.1 | (32.7) | 162.0 |
| EV/Sales | 4.8 | 14.2 | 6.0 | 9.7 |
| Mkt Cap/Sales | 5.3 | 14.3 | 6.2 | 9.6 |
Meesho Grey Market Price
Meesho IPO GMP made a high of ₹46 on 2nd December and made a low of ₹33 on 28th November.
| Date | IPO GMP | GMP Trend | Gain |
|---|---|---|---|
| 2 Dec | ₹46 | ⬆️ | 41.44% |
| 1 Dec | ₹42 | ⬆️ | 37.84% |
| 29 Nov | ₹34 | ⬆️ | 30.63% |
| 28 Nov | ₹33 | ⬆️ | 29.72% |
The Bottom Line
While Meesho is continuously growing, the recent financial statement gives mixed signals, although the majority of the IPO is for fresh issues.
Indian investors don’t care much about valuation, as people usually apply for listing gains, and it is also expected that the IPO will be oversubscribed, seeing the grey market movement. The price range set is also attracting the Indian audience, as seen in the case of Groww IPO.
