Meesho’s share price surged after making a strong debut on the bourses on Wednesday. The stock listed at Rs 162 apiece, a 46 per cent premium from its issue price of Rs 111 apiece. The stock is currently trading at Rs 170.02 per share on the NSE, a further 5 per cent higher to the listing price.
Meesho is an e-commerce marketplace which facilitates trade between retailers and customers. The company raised funds worth Rs 5,421.20 crore from its IPO. It raised Rs 4,250 crore via fresh issue of shares, and Rs 1,171 crore was raised through an offer for sale of stocks by existing shareholders.
In its DRHP, the company had said it would use the majority of the funds raised through the fresh issue for growing its subsidiary Meesho Technologies. This includes investment for cloud infrastructure as well as marketing and brand initiatives.
A portion of the funds will also be used for payment of salaries of staff employed in the AI and machinery learning teams of the company, Meesho had said. Some experts were unhappy with the company’s objectives of raising funds for paying salaries.
Despite some concerns, most brokerages were positive on the company due to relatively cheaper valuations and strong growth prospects. “Meesho remains in the high-growth phase of the platform lifecycle and is expected to deliver 31 per cent FY25–28 revenue CAGR,” broking firm Choice International had said in a report.
Meesho’s IPO was open for subscription between December 3-5. It was subscribed over 79 times, driven by institutional investors who subscribed the issue 120 times the portion allotted for them. In FY25, the company’s revenue rose to nearly Rs 9,390 crore from Rs 7,615 crore a year ago. Its losses narrowed to Rs 289 crore from Rs 3,942 crore.
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