Meesho IPO Day 3 LIVE: Oversubscribed 69x, Grey Market Shows 45% Listing Jump – Should You Invest?

Meesho's initial public offering (IPO) made a lot of noise and still does in the course of opening Day 3. E-commerce giant Meesho priced its share between ₹105 and ₹111, with subscription opening on December 3 and ending on December 5. The company, with its target of ₹4,250 crore, is planning to use the money for cloud infrastructure, marketing, and strategic growth, which means cutting down of losses considerably this year.

Subscription and Grey Market Performance

On December 4, the second day of the IPO, Meesho reported that its issue was subscribed 7.97 times, showing strong investor interest. The current grey market premium (GMP) for Meesho’s shares is also good at ₹49.5. Therefore, the experts’ consensus is that the stock could list at about ₹160.5 per share, which translates to a possible listing gain of 44-45% over the upper price band of ₹111.

Day 1, December 3, had already shown a rather strong participation with 2.35 times of the IPO being subscribed which is a good signal of the growing investor’s confidence in the e-commerce platform. The total IPO of ₹5,421 crore consists of a new share issue of ₹4,250 crore and an offer for sale (OFS) of 10.55 crore shares valued at ₹1,171 crore at the upper end.

Purpose of Funds

Meesho intends to utilize the money obtained from its IPO for reinforcing the primary drivers of its growth. The funds will be spent on more than one cloud infrastructure technology upgrade, and innovations and branding will be an area of great influence. Also, part of the funds will be set aside for general corporate needs. Thus, for Meesho, this is the perfect opportunity to realize its dreams of capturing a larger market share and becoming one of the main players in India's e-commerce sector.

About Meesho

Vidit Aatrey and Sanjeev Kumar were among the founders of Meesho in 2015, and it has since then grown to be one of the most famous e-commerce platforms in the country. Redseer classifies Meesho as the leader in both order volume and active annual transacting users, thereby proving its widespread influence and robust position in the rapidly changing online shopping arena.

With the IPO closing on December 5, investors are pondering their move amidst high oversubscription and attractive grey market premiums.