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Meesho extended its strong post-listing momentum on Wednesday, December 17, with the stock jumping more than 10.5% intraday
Meesho
Meesho share price: Newly listed e-commerce firm Meesho extended its strong post-listing momentum on Wednesday, December 17, with the stock jumping more than 10.5% intraday to a fresh all-time high of Rs 199.35 on the NSE. This marked the second straight session of record highs and the third consecutive day of gains. Over the past three sessions, the stock has surged about 21%, after rising 5.6% and 3.4% in the previous two sessions.
The rally gathered pace after a bullish initiation by global brokerage UBS, which began coverage on Meesho with a ‘Buy’ rating and a target price of Rs 220, indicating nearly 10% upside from the day’s peak.
Meesho had made a stellar market debut last week, listing at a premium of over 46% to its IPO price of Rs 111. On the NSE, the stock opened at Rs 162.50, up 46.40%, and later climbed 55.58% to Rs 172.70. On the BSE, it debuted at Rs 161.20, a gain of 45.22%. With the latest high, the stock has now delivered a sharp 79% return over its issue price.
UBS bullish on Meesho
UBS cited Meesho’s asset-light operating model, robust user growth and improving financial metrics as key drivers of its positive outlook. The brokerage highlighted that Meesho’s negative working capital structure supports strong cash flow generation, setting it apart from many internet peers.
In its note, UBS said it expects Meesho’s Net Merchandise Value (NMV) to grow at a 30% CAGR between FY25 and FY30, aided by rising user engagement and higher order frequency. Annual Transacting Users (ATUs) are projected to increase from 199 million to 518 million over the same period, while order frequency is expected to improve from 9.2x to 14.7x.
Average Order Value (AOV), however, is forecast to decline from Rs 274 to Rs 233 as logistics efficiencies are passed on to customers. UBS estimates contribution margin to reach 6.8%, with adjusted EBITDA margin improving to 3.2% of NMV by FY30.
Meesho IPO details
The Rs 5,421 crore Meesho IPO saw overwhelming demand, with overall subscription of 79.02 times. The issue was priced in the range of Rs 105–Rs 111 per share and comprised a fresh issue of Rs 4,250 crore along with an offer-for-sale of 10.55 crore shares worth Rs 1,171 crore at the upper end of the band.
The company plans to utilise the proceeds for investments in cloud infrastructure, branding and marketing, inorganic growth initiatives such as acquisitions and partnerships, and general corporate purposes.
India’s fastest-growing e-commerce platform
Meesho has emerged as India’s largest e-commerce platform by annual transacting users and order volumes in the 12 months ended September 30, 2025. Its value-led strategy has driven affordability, with AOV declining from Rs 336.71 in FY23 to Rs 274.27 in FY25, even as total orders jumped from 102.4 crore to 183.4 crore during the same period.
Between FY23 and FY25, Meesho’s ATUs grew at a 20.7% CAGR, rising from 13.6 crore to 19.8 crore. Engagement levels remain strong, with average daily product views touching 13.53 billion in FY25.
In the six months ended September 30, 2025, the platform hosted 153.72 million daily active product listings, up from 109.65 million earlier. Nearly 73.18% of orders were driven through personalised feeds and recommendations, underlining the strength of Meesho’s discovery-led commerce model.
Click here to add News18 as your preferred news source on Google. December 17, 2025, 11:38 IST
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