Two smart new listings

Two new listings today, and both did well. India’s primary market stayed in risk-on mode as both Meesho and Aequs made strong debuts, reinforcing appetite for differentiated tech and manufacturing stories despite rich valuations.

Meesho had a super duper listing – against the IPO price of Rs.111, it got listed on the BSE at Rs.161.20 and is now trading at Rs.172 levels.

The IPO had done well with overall subscription at 79.02x, with QIBs taking the giant portion at 120.18x, followed by HNIs at 38.75x and Retail at 19.04x.

Meesho Limited is a 10 year old Bengaluru headquartered ‘value-focused’ online marketplace, connecting 1 in every 4 Indian buyer (23 cr), with 7 lakh sellers on its app. 89% of Meesho’s buyers are from tier 2 and beyond towns of India. Company clocks the highest e-commerce shipment volumes in India, excluding quick-commerce, with 30% market share in FY 2025. 2/3rd of Meesho’s orders are fulfilled through proprietary logistics tech platform ‘Valmo’ (1 lakh delivery agents) and balance through end-to-end logistics partners.

In our IPO Analysis we had concluded - We seldomly recommend loss-making new-age start-ups. But Meesho’s growth track record and market opportunity make the IPO an ‘apply’.

The other listing was on Aequs and it too did well – as against the IPO price of Rs.124, it got listed on the BSE at Rs.140 and is currently trading at around Rs.147.

This IPO did very well, with demand driven to a large extent by retail investors too at 78.05x, with QIBs at 120.92x, HNIs at 80.62; overall the IPO saw solid subscription at 101.63x.

Aequs Limited, established in 2006 as Quest by an NRI technocrat, is a Belagavi based integrated high-precision engineering and product company, with 2.92 million pa installed capacity at Karnataka, US and France, which is 45% utilised at present.

In our IPO Analysis, we had concluded - As short-term profitability is subdued, Aequs’ IPO is recommended only for the long term.