Meesho’s public offering opened on 3 December 2025, and the retail portion of the IPO was fully subscribed within the first hour of bidding. By early afternoon, the broader issue had collected strong bids — indicating robust demand from retail investors and high expectations around the company’s future
Meesho is raising approximately ₹5,421.20 crore through the IPO, with a price band set between ₹105–₹111 per share.
Why the Rush: What’s Driving Strong Demand
✅ Confidence in Meesho’s E-commerce Model & Growth
Meesho operates a mass-market e-commerce model with wide reach across smaller cities and towns — a segment many analysts believe has strong growth potential over the next few years.
Despite past losses, its recent financials show improving revenue growth and unit economics, making it an attractive long-term bet for growth-oriented investors
📈 Grey Market Premium (GMP) Signals Listing Gains
Ahead of the IPO, grey-market premiums for Meesho shares surged, indicating high expectations for listing gains among investors.
That likely intensified retail demand, prompting many to bid early to ensure their allocation.
📊 Anchor Investors & Strong Pre-IPO Backing
The anchor book — the portion reserved for institutional and large investors ahead of public subscription — saw strong demand, building confidence among retail investors that the IPO was likely to perform well.
What This Means for Different Stakeholders
📌 For Retail Investors
The fast subscription suggests over-enthusiasm by retail investors for high-growth IPOs, especially when grey-market signals and media coverage are bullish. If the listing performs well, early investors could reap listing gains. However, oversubscription often leads to allocation pressure — not everyone gets their bid fully fulfilled.
🏢 For Meesho
The strong response strengthens Meesho’s public-market debut, giving it greater financial backing and investor confidence. Funds raised are expected to be used for scaling infrastructure, technology investments, marketing, and expansion into newer categories. mint
📈 For Indian IPO Market
Meesho’s success could encourage other growth-stage companies to list. It signals that despite macroeconomic headwinds, if fundamentals and growth prospects stand out — public demand remains strong. It may also fuel a renewed wave of IPO subscriptions and investor interest.
What to Watch — Risks & Questions Ahead
- Valuation vs. profitability: While growth and revenue are promising, Meesho — like many high-growth tech firms — still needs to prove sustainable profitability. Oversubscription reflects optimism, but long-term performance will matter.
- Allocation uncertainty: High demand doesn’t guarantee high allotment — many retail investors may get only partial or no allocation, due to subscription overshoot.
- Market volatility: Post-IPO listing performance can be volatile. Grey market premiums may not persist once shares are publicly traded.
- Competition & execution risk: The e-commerce space in India is crowded. Meesho will need to maintain its competitive edge in user growth, efficiency, and scale to justify investor expectations.
Conclusion
Meesho’s IPO saw a powerful start, with retail investors rushing to secure allocations — the retail quota was fully subscribed within the first hour of bidding. This strong demand reflects investor confidence in Meesho’s growth story, marketplace model, and potential for a high-impact listing.
