(Image Source: Moneycontrol)
The Meesho IPO has officially closed its books, and now comes the moment of truth for the lakhs of investors who threw their hats in the ring. The e-commerce platform’s ₹5,421 crore public offering, which opened on December 3 and shut on December 5, has been subscribed to more than ten times across all categories. That means for every share on offer, at least ten eager buyers were waiting in line.
The numbers tell a story of overwhelming demand. By the final day, the retail portion alone saw nearly twelve times oversubscription. Non-institutional investors, the wealthy individuals and corporate bodies, were even more aggressive, bidding nearly fifteen times the shares reserved for them. Qualified institutional buyers, who got the biggest chunk of the pie, still oversubscribed their portion by over seven times. In total, investors placed bids for more than 274 crore shares when only about 28 crore were up for grabs.
For the average retail investor who applied for the minimum lot of 135 shares at the upper price band of ₹111, this creates a lottery-like situation. Allotment will be finalised on Monday, December 8, but the chances of getting shares are slim. The rules say that if retail oversubscription exceeds a certain level, everyone gets at least one lot, but beyond that it becomes a game of chance. Most applicants will likely receive a partial allotment or none at all, with refunds hitting their accounts by December 9.
The Grey Market Buzz
While the official allotment is still two days away, the grey market has already made up its mind. Meesho shares are trading at a premium of ₹49.5 above the issue price, suggesting a potential listing price around ₹160 per share. That represents a gain of roughly 45 percent for those lucky enough to get allotment. The grey market premium has held steady through the subscription period, indicating sustained confidence among traders who bet on unlisted stocks.
This puts Meesho in a sweet spot. The company raised ₹2,439 crore from anchor investors even before the IPO opened, with marquee names backing the issue. The fresh issue of ₹4,250 crore will fund cloud infrastructure, marketing, and potential acquisitions, while the offer for sale of ₹1,171 crore allows early investors like SoftBank, Prosus, and Elevation Capital to partially exit.
What Happens Next
The real test comes on December 10, when Meesho lists on both BSE and NSE. A strong listing is widely expected, given the subscription numbers and grey market premium. But investors should remember that listing gains are not guaranteed. Market conditions on the day, profit-booking by institutional investors, and overall sentiment towards new economy stocks will all play a role.
For those who don’t get allotment, the question is whether to buy at listing. The grey market premium suggests strong demand, but valuations matter. At the upper price band, Meesho was valued at approximately ₹52,500 crore. The company is still loss-making at the net level, though its revenue growth has been impressive. It connects millions of small sellers with consumers across India, building a niche in the social commerce space.
The bigger picture is that Meesho represents the new breed of Indian internet companies going public. Unlike traditional manufacturing firms, these businesses burn cash to acquire customers and build scale. Investors are betting on future profits, not current earnings. That makes them riskier but also potentially more rewarding.
As the allotment date approaches, registrars will be working overtime to process applications and coordinate with depositories. Investors can check their allotment status on the BSE website or through their brokers. For many, it will be a disappointment. But in India’s IPO market, oversubscription has become the norm, not the exception. The real winners are often those who get shares and sell on listing day, while long-term investors must wait to see if the company can justify its valuation through sustained growth.
