Meesho Shares Hit Upper Circuit, Price Doubles From Issue; Co-Founder Becomes Billionaire

New Delhi: E-commerce company Meesho, which recently debuted on the stock market, saw its shares surge to the upper circuit in early trading, climbing nearly 95% above its issue price. The stock hit ₹216.35, with the company’s market capitalization reaching around ₹98,000 crore.

UBS has initiated coverage on Meesho with a “Buy” rating, setting a target price of ₹220. The brokerage highlighted Meesho’s asset-light business model, low working capital requirements, and consistent positive cash flow, which distinguish it from many other internet companies. UBS projects strong annual growth of 30% (CAGR) in Net Merchandise Value (NMV) from FY25 to FY30. By FY30, contribution margin and adjusted EBITDA margin (as a percentage of NMV) are expected to rise to 6.8% and 3.2%, respectively.

Robust User Growth Expected

UBS anticipates that NMV growth will be driven by a significant increase in active users, projected to rise from 199 million to 518 million. Meanwhile, the annual ordering frequency per user is expected to increase from 9.2 to 14.7, although the average order value may decrease slightly from ₹274 to ₹233 as logistics savings are passed on to the ecosystem.

Strong Listing Performance

Meesho debuted on December 10, listing at a premium over its IPO price of ₹111, closing the first day up 53%. After a minor two-day correction, the stock surged again, even as broader markets faced pressure.

Co-Founder Turns Billionaire

Meesho’s IPO was oversubscribed 79 times, reflecting strong investor demand. With the stock rally, co-founder and CEO Vidit Aatrey became a billionaire. Holding 11.1% stake (47.25 crore shares) in the company, his shares are now valued at approximately ₹9,142.87 crore (around $1.005 billion).

The meteoric rise of Meesho’s stock underscores strong investor confidence in India’s growing e-commerce sector and the potential of asset-light internet business models.