The newly-listed shares of Meesho jumped 13 percent on December 16 to trade at the highest level seen since their strong market debut earlier this month. The shares have so far surged 74 percent from their IPO price.
Meesho shares rose to Rs 193.44 apiece on Tuesday, before paring some gains.
The stock had made a strong market debut on December 10, listing at Rs 162.50 apiece on NSE. This marked a premium of more than 46 percent from the IPO price of Rs 111 per share.
This came after the Rs 5,421-crore IPO of the e-commerce platform was subscribed 79 times.
The company had a market capitalization of more than Rs 73,000 crore during its much-awaited market debut on December 10.
At today's high, the company's market capitalization stood at over Rs 87,000 crore. This implies that Meesho's market capitalisation has soared by around Rs 14,000 crore in just five trading sessions.
The sharp surge in the share price made Meesho's co-founder and CEO Vidit Aatrey a billionaire. Aatrey owns 47.25 crore shares, or 11.1 percent stake in the company. At the current market price, his stake is now valued at more than Rs 9,140 crore or over $1 billion.
Meesho's other co-founder, Sanjeev Barnwal, holds 31.6 crore shares in the firm, which is now valued at over Rs 6,112 crore.
"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," said Shivani Nyati, Head of Wealth at Swastika Investmart.
"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.
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