- Key Facts and First-Day Trends
- Post-IPO Valuation Check
- Should You Hold or Sell Now?
- What Investors Should Track Now
Meesho’s IPO has moved from hype to reality with a firm listing at a 46.4% premium over its issue price. The stock opened at ₹162.5 on NSE against an IPO price of ₹111, valuing the company at about ₹73,338 crore on day one. This blog walks through what this listing means, how valuations look now, and what different types of investors can think about next.
Key Facts and First-Day Trends
- IPO Price: ₹111 per share
- Listing Price: ₹162.5 per share (46.4% above issue price on NSE)
- Market Capitalization (at listing): ~₹73,300 crore
- Track the live share price of Meesho here.
Post-IPO Valuation Check
At around ₹73,300 crore market cap and about ₹9,390 crore FY25 revenue and ₹11,155 crore annualized revenue for H1 FY26, Meesho trades near a P/S (price-to-sales) ratio of about 6.6-7.8 times based on listing valuation.
P/E (price-to-earnings) is not meaningful right now because net profit is still negative, so the market is valuing Meesho mainly on sales, growth, and cash flow quality rather than current earnings.
On EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortisation), Meesho still looks expensive versus mature retailers, as EBITDA is near break-even or slightly negative even after adjustments.
Versus peers, Meesho now sits above many offline retailers on P/S, cheaper than some high-growth digital names, and broadly in line with “new-age tech” platforms where investors pay up for scale and improving unit economics rather than current profit.
Also Read: Meesho IPO Review: Can This Affordable Shopping App Become India's E-Commerce Giant?
Should You Hold or Sell Now?
- For short-term traders: listing gains are already hefty, so near-term moves may depend on market mood, news flow, and any quick profit booking; traders usually track volumes, intraday supports, and any sharp reversals before taking fresh calls.
- For medium-term investors (1-3 years): the key question is whether Meesho can keep strong revenue growth while holding contribution margin and marketing spends in balance; if margins keep dipping or growth slows, today’s higher P/S can start to look stretched.
- For long-term investors (3-5+ years): Meesho’s large user base, asset-light model, and positive free cash flow offer an interesting base, but the path to clear, steady profit and lower losses will likely decide whether the current premium sustains.
- A balanced path some investors follow is to book part profits after a big listing pop to protect capital, while keeping a smaller core exposure if they understand e-commerce risks and are comfortable tracking results and cash flows closely over time.
What Investors Should Track Now
- Quarterly results: watch revenue growth, contribution margin per order, and whether operating losses are shrinking in a steady way rather than just one-off; these will show if the business engine is truly getting stronger.
- Anchor lock-in expiry: 50% of anchor shares unlock on 7 January 2026 and the rest on 8 March 2026; historically, such events often bring short-term selling pressure of around 5-15%, though strong fundamentals can limit the impact.
- Cash flow and working capital: Meesho benefits from negative working capital days, where it gets cash from customers before paying sellers; investors should see if this advantage continues and supports positive free cash flow even as the company spends on growth.
- Margin trends and marketing spend: rising contribution margin and controlled marketing intensity would support the premium valuation, while falling margins or another big spike in brand spending could worry markets.
- Sector drivers: track changes in e-commerce rules, competition from Amazon, Flipkart, and new quick commerce players, and consumer demand in smaller towns, because these factors can quickly affect order volumes and pricing power.
- Management guidance: pay attention to commentary on new businesses like financial services and local logistics, as well as hiring and tech spends, to judge whether Meesho is chasing growth at any cost or moving towards a more disciplined profit path.
For complete information, visit Meesho’s official IPO page here.
Final Take
Meesho’s listing has rewarded IPO investors with strong first-day gains and shows that the market currently believes in its mass-market e-commerce story, but the stock now carries a richer valuation that demands consistent delivery on growth and improving profitability. Over the next few quarters, the best next step for investors is to track results, cash flows, and anchor unlock phases closely, then calmly review whether the evolving numbers still match their own risk appetite and holding period.
For more IPOs, check INDmoney’s IPO tracker here.
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