Meesho shares rise up to 60% intraday over IPO price on NSE; should you buy, sell or hold?

Meesho IPO share price: Stock makes strong stock market debut.

Meesho shares made a bumper stock market debut to list at 46 percent premium over its initial public offer (IPO) price on Wednesday. The issue was subscribed 79 times in the primary market between December 3-5.

Shares of Meesho were listed at Rs 162.50 per share on the National Stock Exchange (NSE), a strong premium of 46.4 percent. The Rs 5,421-crore issue had a price band of Rs 105-111 per share.

On the BSE, the shares of the company were listed at Rs 161.20 per share, a premium of 45.23 percent. The company's market capitalization post listing of shares stood at Rs 72,751.67-crore.

Shares made an intraday high of Rs 177.49 per share, rising 60 percent from the IPO price.

Meesho share market debut was better than the expectations in the grey market, which had expected a listing gain of about 39 percent, according to IPO Watch.

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Meesho IPO received 2.35 times subscription on the first day of share sale on December 3, helped by across-the-board investors' participation. Earlier, it garnered a little over Rs 2,439 crore from anchor investors.

Meesho share price listing today: Should you buy, sell or hold?

Meesho has successfully carved out a niche in Tier-2/3 cities where Amazon and Flipkart struggle to penetrate deeply.

Shivani Nyati, Head of Wealth at Swastika Investmart, noted "Meesho has turned Free Cash Flow (FCF) positive in FY25, even though reported Net Profit is still negative due to one-off items. At a valuation of Rs 50,000 crore, it is priced at roughly 5.5x Price-to-Sales (FY25). This is attractive compared to Zomato (trading often at >10x Sales). It has "scarcity premium" as it is the only pure-play "value e-commerce" stock in India."

"With its focus on value, scalability and growing user adoption, the overall outlook appears positive. Investors can hold for medium to long term," added Mahesh M Ojha, VP - Research & Business Development at Kantilal Chagganlal Securities Pvt Ltd.

Meesho share listing: Should you buy, sell or hold?

Meesho plans to utilise proceeds for investment in cloud infrastructure, marketing and brand initiatives, as well as funding inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.

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