Meesho's blockbuster listing: Dipan Mehta advises investors to stay put for long term

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At previous close, the Sensex was up 426.86 points (0.51 percent) at 84,818.13, and the Nifty was up 140.55 points (0.55 percent) at 25,898.55

Following a spectacular stock market debut that saw its share price nearly double in just a few trading sessions, market expert Dipan Mehta has advised investors in Meesho to remain invested for the long term. Speaking with CNBC TV18, Mehta  -- Founder Director at Elixir Equities -- acknowledged the potential for a short-term correction but stressed the company's strong long-term prospects.

The discussion arose as Meesho's stock surged from its listing price, approaching the ₹220 price target set by UBS. This prompted questions about whether early investors who bought in the ₹100-₹140 range should book their profits.

Mehta clarified that Meesho's business model is fundamentally different from other consumer technology players like Eternl. He likened Meesho to online marketplace giants Amazon and Flipkart, suggesting this distinction is a key reason for the strong investor interest. "Meesho is more like Amazon and Flipkart… I think investors have flocked to Meesho which of course is the largest online marketplace as well," he stated.

Despite the rapid appreciation, Mehta cautioned against selling out. "I think you remain invested… it's a great long-term story and I wouldn't want to sell off just because the prices rallied like this," he advised. He attributed the sharp run-up to the initial frenzy and excitement that often surrounds new listings but reiterated his belief in the company's underlying value over a longer horizon.