Meesho sets IPO price band at Rs 105–111 ahead of Dec 3 opening

New Delhi: SoftBank-backed e-commerce firm Meesho has announced that it will raise Rs 5,421 crore through its initial public offering (IPO), which opens for subscription on December 3.

The company has set a price band of Rs 105 to Rs 111 per share, valuing Meesho at Rs 50,096 crore (USD 5.6 billion) at the upper end.

In its public announcement on Friday, Meesho said the maiden public offering will close on December 5, with anchor investors expected to receive their allocations on December 2.

The IPO will consist of a fresh issue of shares worth Rs 4,250 crore, alongside an offer for sale (OFS) of 10.55 crore shares valued at Rs 1,171 crore at the upper band, taking the total issue size to Rs 5,421 crore.

The OFS includes shares being sold by some of Meesho’s early investors, including Elevation, Peak XV, Venture Highway and Y Combinator.

Proceeds from the IPO are planned for investment in cloud infrastructure, marketing and brand initiatives, as well as funding inorganic growth through acquisitions and other strategic initiatives, along with general corporate purposes.

Meesho is expected to make its stock market debut on December 12.

Of the total issue, 75% has been reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

In FY25, Meesho connected over 5 lakh transacting sellers with 199 million annual transacting users, facilitating 1.8 billion placed orders.

The company’s Net Merchandise Value (NMV) grew 29% year-on-year to Rs 29,988 crore in FY25, following 21% growth in FY24. In e-commerce, NMV refers to the cumulative checkout value of successfully delivered orders, inclusive of taxes. It is a key measure of platform health, reflecting customer adoption and repeat usage, which drives revenue, margins, and cash flow.

Financially, the company posted a net loss of Rs 3,942 crore for FY25, primarily due to one-time exceptional items, including reverse flip tax and perquisite tax, which were necessary for the company’s transition to a public structure.