Meesho IPO GMP: Five reasons why e-commerce firm's grey market estimates are as high as 38%

Meesho IPO GMP rises ahead of share sale on December 3. 

Meesho shares are quoting a grey market premium (GMP) of up to 38 percent ahead of the company’s initial public offering, according to platforms that track unregulated market activity. The SoftBank-backed e-commerce firm’s public issue will open for subscription on December 3 and close on December 5.

The Bengaluru-based company plans to raise Rs 5,421 crore and has set a price band of Rs 105-111 per share. At the upper end, Meesho’s valuation stands at Rs 50,096 crore.

Platforms monitoring grey market trends indicated that Meesho’s shares are trading at a premium of 36-38 percent. Investorgain quoted a GMP of Rs 40, suggesting a potential listing gain of 36.04 percent, while IPO Watch pegged the premium at 37.84 percent.

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5 reasons for the strong grey market sentiment

1) Promoters signal confidence: The company has sharply cut the size of its Offer For Sale (OFS) from earlier plans, a move seen by analysts as a sign that existing investors prefer to retain their holdings. The trimmed OFS, they say, improves sentiment among prospective investors who often read such decisions as promoters’ confidence in the company’s future performance.

The IPO includes an OFS of 10.55 crore shares valued at Rs 1,171 crore at the upper band. The sale comprises shares held by early investors such as Elevation Capital, Peak XV, Venture Highway and Y Combinator, as well as promoters Vidit Aatrey and Sanjeev Kumar. The company plans to use the primary proceeds for cloud infrastructure investment, marketing and brand-building, inorganic growth opportunities and general corporate purposes.

Meesho breaks from new-age playbook with a sensibly priced IPO

2) Betting Big on Technology: Meesho follows a technology-first strategy, limiting manual interventions across its operations. The company has integrated GenAI tools into its engineering workflow to streamline code generation, improve development speed and reduce deployment time. Its mobile application is designed with India-specific user behaviour in mind, helping the platform scale while keeping operating costs in check and improving overall efficiency.

3) No direct listed peers: Analysts note that Meesho’s business model makes it difficult to benchmark against other recently listed consumer-tech companies. Its combination of large user scale, low average order value, asset-light fulfilment and NMV-linked economics sets it apart from platforms such as Zomato, Nykaa or Mamaearth. "There aren’t really any direct peers… given the size and scale Meesho has achieved, there are very few comparable companies," Fisdom Head of Research Nirav Karkera said. They add that comparisons used in the market are largely sentiment-driven rather than for valuation purposes.

4) Losses narrow sharply: Meesho reported a net loss of Rs 3,942 crore for FY25, mainly due to exceptional items related to its transition to a public structure, including reverse flip tax and perquisite tax. The company’s losses narrowed significantly to Rs 700.72 crore in the first half of FY26 from Rs 2,513 crore in the same period last year. Revenue from operations rose to Rs 5,577.54 crore in the six months ended September 2025 from Rs 4,311.29 crore a year earlier.

5) Zero-commission model draws sellers and buyers: Meesho operates a platform that connects consumers, sellers, logistics partners and content creators. Managing Director and CEO Vidit Aatrey said the company focuses on offering "everyday low prices" supported by its technology-led processes and scale. He said the zero-commission model helps reduce fulfilment costs for sellers, enabling them to list affordable products across categories, from unbranded items to regional and national labels. According to him, the platform has become a destination for a wide range of purchases and is attracting users who previously shopped on other e-commerce platforms.

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