E-commerce platform Meesho is gearing up for its highly anticipated Initial Public Offering (IPO), with the company announcing a price band of ₹105 to ₹111 per equity share. This crucial detail sets the valuation range for potential investors looking to acquire a stake in the rapidly growing e-commerce entity. The public issue is scheduled to commence on December 3, marking. A significant milestone for Meesho and an opportunity for the investment community.
IPO Details and Key Dates
The Meesho IPO is structured to raise a total of ₹5421 crore. This substantial amount will be generated through a combination of fresh equity shares worth ₹4250 crore and an Offer For Sale (OFS) of 10. 55 crore shares by existing shareholders. Anchor investors, typically large institutional investors, will have the opportunity to place their bids on December 2, a day prior to the main issue opening, while the IPO will close for subscriptions on December 5, after which the final allotment of shares is expected to be finalized on December 8. Following the allotment, the shares are likely to be listed on both the BSE and NSE stock exchanges on December 10, providing liquidity to investors and marking Meesho's debut on the public markets.
Company Background and Regulatory Approval
Meesho initially submitted its draft papers for the IPO through a confidential route in July. Of this year, a strategic move to keep its intentions private during the initial stages. The company subsequently received approval from the capital market regulator, SEBI, in October 2025, paving the way for the public offering, while the company's promoters, Vidit Aatrey and Sanjeev Kumar, have been instrumental in Meesho's journey from its inception to becoming a prominent player in the Indian e-commerce landscape. For this public issue, a consortium of leading financial institutions, including Kotak Mahindra Capital Company Limited, JP Morgan, Morgan Stanley, Axis Capital, and Citigroup, are serving as the book-running lead managers. Kfin Technologies Ltd. has been appointed as the official registrar for the IPO.
Shareholders Participating in OFS
The Offer For Sale (OFS) component of the Meesho IPO will see several key shareholders offloading a portion of their stakes. Among those participating in the share sale are the company's promoters, Vidit Aatrey and Sanjeev Kumar, indicating a partial exit or rebalancing of their holdings. Also, a list of prominent institutional and venture capital investors will also be selling shares. These include Peak XV Partners, Elevation Capital V Limited, Venture Highway Series 1, Golden Summit Limited, Y Combinator Continuity Holding I LLC, Sareen Family India LLC, and Gemini Investments. Man He Tam is also listed among the shareholders participating in the OFS. This allows early investors to realize returns on their investments while providing new investors an entry point into the company.
Utilization of IPO Proceeds
The funds raised from the fresh issue of shares in the IPO are. Earmarked for several strategic initiatives aimed at bolstering Meesho's growth and operational capabilities. A significant portion will be invested in cloud infrastructure within its subsidiary, MTPL, which is crucial for enhancing the platform's scalability and technological backbone, while the proceeds will also be utilized for salary payments, ensuring smooth operations and talent retention, and for other investments in MTPL. Also, Meesho plans to allocate funds towards inorganic growth, specifically through acquisitions and other. Strategic initiatives, which will enable the company to expand its market reach and service offerings. Any remaining capital will be used for general corporate purposes, providing the company with financial flexibility for day-to-day operations and unforeseen expenditures. The Meesho IPO has a defined allocation structure to ensure participation from various investor categories. A substantial 75 percent of the issue is reserved for Qualified Institutional Buyers (QIBs), targeting large institutional investors such as mutual funds, foreign institutional investors, and banks. Retail investors, comprising individual investors, will have 10 percent of the issue reserved for them, providing an opportunity for the general public to invest, while the remaining 15 percent of the issue is allocated to Non-Institutional Investors (NIIs), which typically includes high-net-worth individuals, corporate bodies, and trusts. This diversified allocation strategy aims to ensure broad participation and a successful subscription for the IPO.
Reservation and Allocation Structure
Meesho's Financial Health
Currently, Meesho isn't a profitable entity, while the company's financial performance in fiscal year 2025 saw an increase in losses, primarily attributed to expenses related to shifting its base from Delaware in the United States to India. In FY2025, Meesho's net loss widened Importantly from ₹305 crore to ₹3,941 crore. However, excluding losses before tax and exceptional items, the net loss for FY2025 stood at ₹108 crore, indicating a different picture of operational performance, while for the first quarter of fiscal year 2026, Meesho reported a net loss of ₹289 crore. A notable positive aspect of the company's financial standing is that it's debt-free, which provides a strong foundation. For future growth and financial stability, reducing the burden of interest payments and offering greater flexibility in capital allocation. This IPO represents a pivotal moment for Meesho, as it seeks to raise capital to fuel its ambitious growth plans. By leveraging the funds, Meesho aims to strengthen its operational. Capabilities, invest in critical technological infrastructure, and pursue strategic expansion opportunities. For investors, it presents an opportunity to invest in a prominent player within the burgeoning e-commerce sector, despite the company's current unprofitability. The successful listing will be a testament to the market's confidence in Meesho's long-term vision and business model.