Meesho Adds ₹47,000 Crore in Investor Wealth, Becomes 2025’s Best-Performing Large IPO

Meesho has emerged as the standout IPO of 2025, delivering exceptional returns to investors after a sharp rally in its share price. Strong buying interest following a bullish UBS call has pushed the company’s market value significantly higher, allowing it to outperform several high-profile listings this year.

Meesho’s shares witnessed a sharp rally on Wednesday, driven by a strong ‘Buy’ call from UBS, making it the best-performing large IPO of 2025. During the trading session, the stock surged nearly 20%, taking its gains to almost 95% above the issue price.

According to Trendlyne data, among companies that raised more than ₹5,000 crore through IPOs this year, Meesho has delivered the strongest performance. Groww ranks second, with its shares trading around 43% above their offer price.

Meesho, which raised approximately ₹5,421 crore and was listed on December 10, now commands a market capitalisation of about ₹97,600 crore, or roughly $11 billion. At the upper end of its IPO price band, the company was valued at around ₹50,100 crore. This indicates that since listing, Meesho has added nearly ₹47,000 crore in investor wealth.

Strong Listing and Market Dynamics

The stock’s rally has been supported by a robust listing price of around ₹162, representing a premium of more than 46% over the issue price. On its debut day, Meesho closed at nearly ₹170.

However, analysts point out that the free-float available for trading is limited, as a significant portion of the shares is held by large investors. As a result, even small changes in demand or supply could lead to sharp price movements. The first tranche of lock-in shares is scheduled to be released on January 6 next year.

UBS Outlook on Meesho

Earlier, UBS initiated coverage on Meesho with a ‘Buy’ rating and a target price of ₹220, citing multiple long-term growth drivers. The brokerage highlighted Meesho’s asset-light business model and negative working capital structure, which have enabled the company to consistently generate positive cash flows—setting it apart from many other internet-based businesses.

UBS expects Meesho’s net merchandise value (NMV) to grow at a compound annual rate of around 30% between FY25 and FY30, driven by a rapid increase in transacting users and higher order frequency. The brokerage also noted improving contribution margins and adjusted EBITDA margins, supported by operating leverage as the business scales.

Outperforming Other Major IPOs

Among other large IPOs this year:

• Groww is trading about 43% above its issue price.

• LG Electronics India has gained roughly 36%, though its momentum has slowed in recent weeks.

• Hexaware Technologies, which raised ₹8,750 crore, is up just over 8%, reflecting investor caution amid global technology spending concerns.

• HDB Financial Services, despite a strong debut, is now only about 3% above its offer price, as investors reassess valuation and growth prospects in the NBFC sector.

• Lenskart Solutions has seen gains of less than 1%, while Tata Capital is up just 0.2%.

Why Meesho Is Gaining Momentum

Meesho’s strong performance highlights the growing value being placed on India’s e-commerce sector, especially companies focused on low average order value, high user participation, and tight cost control. UBS noted that improvements in logistics efficiency could benefit both sellers and users. While this may further reduce average order values, it is expected to expand the overall ecosystem and drive higher sales volumes over time.