Meesho shares: Rs 1,949 cr worth block deal! 10.48 cr shares changed hands; key details

Shares of Meesho Ltd are in focus on Tuesday, as 10,48,00,000 shares changed hands on the counter at Rs 186 apiece, amounting to Rs 1,949.28 crore. As per term sheet earlier accessed by Business Today, Elevation Capital V Limited, Peak XV Partners Growth Investments IV and Peak XV Partners Investment were looking to offload Meesho shares today. The offer price, as per the term sheet was set at Rs 182.08 per share, which was at 5 per cent discount to Monday's closing price.

Morgan Stanley India Company Private Limited was the placement agent.

As per the term sheet details, the base offer was for selling of up to 10.5 crore Meesho shares, accounting for 2.3 per cent of existing outstanding shares. The base offer at the floor price amounted to Rs 1,911.80 crore or $201 million.

Elevation Capital V Limited held 55.5 crore shares in Meesho, accounting for 12.04 per cent of the total outstanding shares as of June 30. Peak XV Partners Investment V owned 46.4 crore shares and held 10.06 per cent stake in Meesho. Peak XV Partners Growth Investments IV also held 6.4 crore Meesho shares, accounting for 1.39 per cent of existing total shares outstanding.

Meesho operates a multi-sided marketplace, connecting consumers, sellers, logistics providers, and content creators, creating a self-reinforcing flywheel that drives platform adoption and sustains its cost advantage.

Unlike traditional retailers and other internet platforms, Meesho's business model is truly asset-light requiring limited capex on physical infra or inventory, MOFSL said recently. The domestic brokerage noted that Meesho operates on a negative working capital, which provides large float income and enables significant FCF generation.

MOFSL expects Meesho to deliver a 25 per cent CAGR in marketplace NMV over FY26-31, driven by customer acquisition and rising platform adoption. Higher ad monetization and normalization in logistics spread should drive 400 basis points expansion in contribution margin to 7.5 per cent by FY31, it said adding that 255 bps operating leverage should drive adjusted Ebitda of Rs 4800 crore by FY31.

"We initiate coverage on Meesho with a Buy rating and a target of Rs 240, premised on 30x FY31E adj. marketplace Ebitda, discounted to September 2028E. This implies 1.4 times FY28E EV/NMV, ~10% premium to Eternal's FY28 multiple. However, we believe a higher multiple could be justified for Meesho, given its truly asset-light model, negative working capital, and likely significant FCF generation starting FY27 and rising to 4%+ of NMV by FY31," it said on July 27