Notice Board

Meesho Ltd – Company Background

Meesho Ltd is one of the fastest growing ecommerce marketplaces in India. Its platform brings together consumers, sellers, logistics providers, and content creators under a single umbrella. Sellers benefit from a low-cost digital storefront, while consumers get access to a wide range of affordable products and bargain prices.

While Meesho’s core business is an agnostic ecommerce marketplace, it also offers low-cost last-mile logistics solutions to sellers. As per the RHP, the company has over 7.06 lakh sellers and 23.42 crore transacting users.

The IPO is a combination of a fresh issue and an offer for sale (OFS) by early investors. Proceeds from the fresh issue will be used for investments in cloud infrastructure, meeting costs related to its AI and ML initiatives, investment in subsidiary MTPL, and funding inorganic growth opportunities.

The OFS component is being offered by early investors and promoter shareholders. The promoters of Meesho Ltd are Vidit Aatrey and Sanjeev Kumar. The book-running lead managers to the issue are Kotak Mahindra Capital, JP Morgan, Morgan Stanley, Axis Capital, and Citigroup, while KFIN Technologies Ltd (KFINTECH) is the registrar to the IPO.

Highlights of the Meesho Ltd IPO

• The IPO of Meesho Ltd will be open from 3 December 2025 to 5 December 2025.
• Face value is ₹1 per share and the IPO price band is fixed at ₹105 to ₹111 per share.
• The IPO is a combination of a fresh issue and an offer for sale by the promoters and early investors.
• Fresh issue: 38,28,82,882 shares (3,828.83 lakh shares) aggregating to approximately ₹4,250 crore at the upper price band of ₹111.
• OFS: 10,55,13,839 shares (1,055.14 lakh shares) aggregating to approximately ₹1,171.20 crore at the upper price band.
• Total issue size: 48,83,96,721 shares (4,883.97 lakh) aggregating to around ₹5,421.20 crore at the upper price band.
• Proposed listing on the NSE and BSE mainboard. Anchor allocation will take place one working day prior to the IPO opening date.

Key Dates, Investor Allocation & Lot Sizes

Investors can apply through their existing trading account or apply using ASBA via internet banking, through the list of authorized self-certified syndicate banks (SCSBs).

Financial Highlights of Meesho Ltd

Meesho Ltd has reported losses in each of the last three financial years, with losses widening sharply in FY25. This was largely on account of exceptional items in the latest year and higher tax expense arising from business combinations. Consequently, profitability ratios like ROE and ROA are deeply negative and do not offer much decision support by themselves.

On the positive side, topline revenues have grown steadily and are up nearly 60% over the last two financial years, reflecting rapid scale-up of the underlying business.

Valuation Metrics of the Meesho Ltd IPO

At the upper end of the price band (₹111), the latest EPS of ₹-9.98 implies a negative P/E and therefore traditional P/E-based valuation is not meaningful. This is typical for high-growth ecommerce businesses that require deep upfront investments and have a longer gestation period before profits normalize.

In such cases, investors often focus more on the intangible and tangible drivers of the business model. Meesho operates a four-sided ecommerce platform, simultaneously catering to sellers, buyers, logistics partners, and content creators, giving it elements of both B2B and B2C.

The platform is heavily technology-driven with AI-based solutions for discovery, pricing, and logistics optimization. The company focuses on affordable products and regional/unbranded offerings, enabling it to tap demand beyond the large metros and into Bharat-centric, value-conscious segments.

The business model is highly scalable and, if executed well, can lead to operating leverage over time. Investors looking at the Meesho IPO should therefore evaluate it primarily on its growth runway, platform strength, unit economics, and path to profitability, rather than traditional metrics like trailing P/E alone.