Meesho stock rallies 20%, up nearly 90% from IPO price as UBS initiates 'Buy'
Published on 17/12/2025 01:52 PM
Meesho Share Price: Shares of recently-listed Meesho Ltd extended their gains on Wednesday, rising 20 per cent to Rs 216.34, up Rs 36.05, following a bullish rating from investment bank UBS.
The e-commerce firm’s stock touched a new high of Rs 214.40 per share earlier in the session, marking its strongest trading day since listing on December 10, 2025, before climbing further to the current level, compared to a 0.04 per cent decline in the Nifty 50 as of late morning.
Market guru and Zee Business Managing Editor Anil Singhvi recommended Meesho as Stock of the Day, advising a buy with stop loss (SL) at Rs 176 and targets of Rs 183, 187, and 190. He noted that the stock had seen a very strong move yesterday, up 5.5 per cent, highlighting sustained bullish momentum.
The company’s shares have now risen for the third consecutive session, surging nearly 30 per cent over this period. From its issue price of Rs 111 per share, the stock has climbed 95 per cent, boosting Meesho’s market capitalisation to Rs 94,256.74 crore.
The global brokerage UBS initiated coverage on Meesho with a ‘Buy’ rating and a price target of Rs 220 per share. UBS projects that Meesho’s net merchandise value (NMV) will grow at a 30 per cent CAGR between FY25 and FY30.
The brokerage expects contribution margins and adjusted EBITDA margins (as a share of NMV) to improve steadily to 6.8 per cent and 3.2 per cent, respectively, by FY30, driven by a sharp rise in annual transacting users (ATU). UBS estimates the annual ordering frequency will increase from 9.2 times to 14.7 times, although the average order value is expected to decline from Rs 274 to Rs 233.
Meesho operates as a multi-sided technology platform, connecting consumers, sellers, logistics partners, and content creators, and has emerged as one of India’s largest e-commerce players. The platform currently serves 234 million ATUs, generating around 2,270 million orders.
Meesho’s maiden public offering (IPO) was subscribed 79.03 times, with qualified institutional buyers (QIBs) driving subscription to 120.18 times. The IPO included a fresh issue of 382.9 million shares aggregating Rs 4,250 crore and an offer-for-sale (OFS) of 105.5 million shares worth Rs 1,171.2 crore. On the NSE, the stock listed at Rs 162.50, a premium of Rs 51.50 or 46.4 per cent over the issue price.