IITian Vidit Aatrey joins billionaire club as Meesho zooms 74% from issue price
Vidit Aatrey, the co-founder and chief executive officer of Meesho Ltd, entered the billionaire club on Tuesday as the e-commerce company’s shares extended their post-listing surge, climbing as much as 13.3% to Rs 193.50 and taking gains since the initial public offering to more than 74%, a rally that has turned paper wealth into nine-figure reality.
Shares of Meesho Ltd surged to Rs 193.50 on the BSE on Tuesday, well past their listing-day high of Rs 177.50 and comfortably above the listing price of Rs 161.20. The stock has now gained 74.3% from its issue price of Rs 111, cementing a blockbuster debut just days after the company entered the public markets.
The sharp rise in the stock has propelled Aatrey into the billionaire ranks. With an 11.1% stake, equivalent to 47.25 crore shares, his net worth now stands at Rs 9,142.87 crore, or about $1.005 billion. Co-founder Sanjeev Barnwal, who holds 31.6 crore shares, now has a stake valued at Rs 6,114.6 crore.
Meesho's momentum builds after blockbuster debut
Meesho made its stock market debut on December 10, listing at a premium to its issue price and closing its first session 53% above the Rs 111 IPO price. After a two-day decline, the stock gained more than 3% on Monday before extending its rally on Tuesday, even as broader markets remained under pressure.
The move came with notable trading activity. Turnover stood at Rs 124.38 crore, with a total traded quantity of 66.84 lakh shares. Meesho’s market capitalisation was pegged at Rs 85,207.91 crore on a full basis and Rs 5,279.14 crore on a free-float basis, according to BSE data.
First institutional call adds fuel
The rally has been underpinned by Meesho’s first institutional rating. Choice Institutional Equities recently initiated coverage with a ‘Buy’ rating and a target price of Rs 200.
Choice Broking cited a “faster road to profitability” as a key upside trigger and said it values Meesho at 4x FY28E EV/Revenue, supported by a three-stage DCF model and peer benchmarking. The brokerage expects Meesho to deliver a 31% revenue CAGR between FY25 and FY28, driven by “deep value-commerce penetration and logistics efficiencies.”
The brokerage highlighted Meesho’s zero-commission, low-AOV, discovery-led platform focused on Tier-2 and Tier-3 users, along with what it described as a competitive edge in user growth and operational scale. Meesho’s EBITDA is projected to turn positive by FY27E.
At current levels, Meesho trades at 2.4x FY28E EV/Revenue, compared with a peer average of 5.4x, leaving “headroom for re-rating as fundamentals strengthen,” the report noted.
Choice also flagged execution risks, including high dependence on cash-on-delivery, which accounts for 77% of the order mix, and logistical fragmentation. Even so, the initiation positions Meesho as one of the key value e-commerce players on the Street’s radar in India’s underpenetrated online retail market.
IPO demand set the tone
Meesho’s three-day IPO, sized at over Rs 5,000 crore, drew strong demand from both institutional and retail investors. The issue was subscribed 79 times overall, with the retail portion subscribed more than 19 times.
The tranche reserved for Qualified Institutional Buyers was subscribed 120 times the shares on offer, setting the stage for the post-listing surge that has now minted a new billionaire.
Also read | Meesho shares zoom 13% to fresh peak; market cap tops Rs 85,000 crore
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Shares of Meesho Ltd surged to Rs 193.50 on the BSE on Tuesday, well past their listing-day high of Rs 177.50 and comfortably above the listing price of Rs 161.20. The stock has now gained 74.3% from its issue price of Rs 111, cementing a blockbuster debut just days after the company entered the public markets.
The sharp rise in the stock has propelled Aatrey into the billionaire ranks. With an 11.1% stake, equivalent to 47.25 crore shares, his net worth now stands at Rs 9,142.87 crore, or about $1.005 billion. Co-founder Sanjeev Barnwal, who holds 31.6 crore shares, now has a stake valued at Rs 6,114.6 crore.
Meesho's momentum builds after blockbuster debut
Meesho made its stock market debut on December 10, listing at a premium to its issue price and closing its first session 53% above the Rs 111 IPO price. After a two-day decline, the stock gained more than 3% on Monday before extending its rally on Tuesday, even as broader markets remained under pressure.
The move came with notable trading activity. Turnover stood at Rs 124.38 crore, with a total traded quantity of 66.84 lakh shares. Meesho’s market capitalisation was pegged at Rs 85,207.91 crore on a full basis and Rs 5,279.14 crore on a free-float basis, according to BSE data.
First institutional call adds fuel
The rally has been underpinned by Meesho’s first institutional rating. Choice Institutional Equities recently initiated coverage with a ‘Buy’ rating and a target price of Rs 200.
Choice Broking cited a “faster road to profitability” as a key upside trigger and said it values Meesho at 4x FY28E EV/Revenue, supported by a three-stage DCF model and peer benchmarking. The brokerage expects Meesho to deliver a 31% revenue CAGR between FY25 and FY28, driven by “deep value-commerce penetration and logistics efficiencies.”
The brokerage highlighted Meesho’s zero-commission, low-AOV, discovery-led platform focused on Tier-2 and Tier-3 users, along with what it described as a competitive edge in user growth and operational scale. Meesho’s EBITDA is projected to turn positive by FY27E.
At current levels, Meesho trades at 2.4x FY28E EV/Revenue, compared with a peer average of 5.4x, leaving “headroom for re-rating as fundamentals strengthen,” the report noted.
Choice also flagged execution risks, including high dependence on cash-on-delivery, which accounts for 77% of the order mix, and logistical fragmentation. Even so, the initiation positions Meesho as one of the key value e-commerce players on the Street’s radar in India’s underpenetrated online retail market.
IPO demand set the tone
Meesho’s three-day IPO, sized at over Rs 5,000 crore, drew strong demand from both institutional and retail investors. The issue was subscribed 79 times overall, with the retail portion subscribed more than 19 times.
The tranche reserved for Qualified Institutional Buyers was subscribed 120 times the shares on offer, setting the stage for the post-listing surge that has now minted a new billionaire.
Also read | Meesho shares zoom 13% to fresh peak; market cap tops Rs 85,000 crore
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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