Meesho IPO Fully Subscribed on Day 1; Retail Investors Oversubscribe 3.74x, GMP Reaches 42%

Online e-commerce platform Meesho’s IPO was fully subscribed on the very first day, with retail investors oversubscribing 3.74 times. The IPO has generated significant buzz in the grey market, with a strong listing premium indicating positive listing prospects.

Meesho IPO Subscription Status

Meesho’s Initial Public Offering (IPO) was completely subscribed on its first day, Wednesday, 3 December 2025. Investors rushed to apply as soon as the issue opened, and the retail category portion was fully subscribed within just one hour. The public issue will remain open for subscription until 5 December.

In the grey market, Meesho’s non-listed shares are trading at a strong premium, signaling a positive listing outlook for the IPO.

Subscription Figures

The IPO has seen overwhelming interest from investors. According to NSE data, bids were received for 61,44,85,440 shares, while the issue offered 26,86,18,197 shares. This means the IPO was applied 2.29 times in total.

• Retail investors: Subscribed 3.74x

• Non-institutional investors: Subscribed 1.54x

Retail investors have driven the highest demand for the IPO so far.

Meesho IPO Grey Market Premium (GMP)

The grey market premium (GMP) for Meesho’s IPO was ₹49 on Wednesday. Considering the upper price band of ₹111 and the current grey market premium, the estimated listing price is around ₹160 per share, which is approximately 44.14% higher than the IPO price band.

Should Investors Subscribe?

According to Arihant Capital analysts, Meesho enters FY26 with a strong growth outlook. The company benefits from its scaled flywheel model and Meesho AI Labs’ AI technology. Its content commerce, Meesho Mall, and financial services are emerging as new avenues for growth.

Analysts note that content commerce in India is still far smaller than China, indicating significant potential for growth. Meesho focuses on Tier-2 and smaller cities and targets a massive user base of 692–706 million smartphone users.

Valuation and Analyst Recommendations

• IPO upper price band: ₹111

• FY26E P/S ratio: 2.3x

• Analysts recommend long-term subscription to the IPO.

SBI Securities highlights that Meesho operates on a zero-commission model, earning most revenue from logistics and advertising, and though currently net-loss-making, the company has produced positive free cash flow for the past two years.

Financial Highlights

• FY24-25: ₹2,487 crore in one-time tax charges

• 1HFY26: ₹72 crore tax related to a business-combination event (process now complete)

Analysts believe this reduces the likelihood of future losses, supporting profitability in the long term.

• Post-issue valuation at upper price band: 5.3x FY25 P/S ratio

• Continued investment in technology, marketing, and engineering is vital for growth.

SBI Securities advises investors to subscribe at cut-off price for long-term potential.