The initial public offering (IPO) of ecommerce unicorn Meesho continued to draw strong investor demand on Day 2, with the issue oversubscribed 5.23 times as of 14:18 IST. The Bengaluru-based social commerce platform received bids for 145.20 crore shares against 27.79 crore shares on offer, reflecting robust market confidence in the company’s business model and growth trajectory.
Retail Investors Lead Aggressive Bidding
Retail investors emerged as the strongest contributor in the subscription race. The retail portion was oversubscribed 7.82X, with investors bidding for 39.90 crore shares against the 5.1 crore shares reserved for them. This reflects the high brand visibility and trust Meesho enjoys among individual investors, particularly those familiar with its low-cost, value-driven ecommerce approach.
NIIs and QIBs Also Show Strong Participation
Non-institutional investors (NIIs) also showed significant interest, oversubscribing their quota by 6.48X. They placed bids for 49.61 crore shares against 7.65 crore shares available for this category.
Meanwhile, the Qualified Institutional Buyers (QIBs) segment recorded an oversubscription of 3.72X, receiving bids for 55.91 crore shares against the 15.03 crore shares reserved. The strong QIB response highlights the broader institutional belief in Meesho’s scalable business model and sustained growth potential within India’s ecommerce sector.
IPO Structure and Pricing
Meesho’s IPO comprises a fresh issue of ₹5,421 crore along with an offer for sale (OFS) of 10.6 crore shares by existing shareholders. The company has set a price band of ₹105 to ₹111 per share, seeking a valuation of ₹50,000 crore (approximately $5.5 billion) at the upper end of the band.
Analysts note that the attractive pricing, coupled with Meesho’s strong revenue growth and improving profitability metrics, has been a key factor behind the high subscription numbers.
What’s Driving Investor Confidence?
Meesho’s asset-light model, deep penetration in Tier-2 and Tier-3 cities, and focus on affordability have positioned it as a disruptive force in India’s ecommerce landscape. Its marketplace approach, which eliminates heavy logistics ownership, enables competitive pricing and strong unit economics—factors investors are rewarding in the current market environment.
Outlook
With one more day of bidding left, analysts expect the Meesho IPO to see further traction, particularly from institutional investors. If the current trend continues, Meesho is set to make one of the most successful market debuts among India’s consumer internet companies in recent years.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.