Meesho Shares Worth ₹900 Crore Traded in Major SoftBank Block Deal

The Indian equity market witnessed a strong session on Wednesday, with the Nifty 50 index closing at its highest level since September 10. This rise coincided with Brent crude oil prices falling below the $100 per barrel mark, driven by optimism surrounding potential diplomatic progress between the US and Iran. Key sectors such as metals and financial services, particularly Bajaj Finance, were instrumental in pushing the market upward.

Alongside these broader market movements, investors absorbed significant block deals totaling more than ₹2,700 crore across seven different stocks. Among these transactions, a major block deal involving shares of Meesho stood out, with nearly ₹900 crore worth of shares changing hands on the National Stock Exchange.

The Meesho transaction involved the sale of approximately 3.86 crore shares at ₹233 apiece. This deal represents the second considerable liquidity event for the company in October, following SoftBank’s earlier divestment of its stake for ₹1,650 crore. The seller in this instance was RPS WOS II LLC, a firm led by Kabir Misra, formerly a managing partner at SoftBank. RPS WOS II LLC sold shares valued at ₹899.7 crore, equating to 0.84 percent of its overall stake in Meesho.

On the buyer side, the Government of Singapore Investment Corporation (GIC) and Mirae Asset Mutual Fund emerged as the largest purchasers, acquiring shares worth ₹307.5 crore and ₹179.9 crore respectively. Despite the substantial block deal, Meesho’s stock price closed the day 1.6 percent lower at ₹236.37 on the NSE, down from the previous day’s closing price of ₹240.19.

Earlier on Tuesday, UBS issued a positive research note on Meesho, assigning it a "Buy" rating. The report highlighted Meesho’s strategy of focusing on value commerce within India’s digitally adept yet price-sensitive market as a key growth driver. UBS forecasted the company’s net merchandise value (NMV) to expand at a compound annual growth rate (CAGR) of 28 percent from fiscal year 2025-26 through fiscal year 2030-31.

This growth projection is supported by expectations of Meesho’s user base swelling from 264 million in FY26 to 592 million by FY31, alongside an increase in order frequency from 10 to 16 orders per user annually. UBS also anticipated advertising revenue to account for 5 to 6 percent of NMV, contributing to a positive contribution margin of 6.2 percent and an adjusted EBITDA margin of 2.3 percent by FY30.

Addressing concerns about the recent block deals, Kunal Bajaj, a research analyst at Choice Institutional Equities, pointed out that these transactions represent secondary market sales that do not affect Meesho’s underlying business fundamentals. Bajaj emphasized the company’s ongoing benefits from user growth, a broadening seller network, improved logistics efficiency, and increasing monetization of advertising revenues.

UBS further noted Meesho’s improving financial momentum, driven by expanding advertising income and reduced logistics costs per order. These factors contribute to operating leverage that is expected to accelerate Meesho’s path to sustainable profitability over the coming years.

Meesho operates in the competitive Indian e-commerce sector, focusing on social commerce and value-driven offerings targeted at consumers in lower-income brackets who are increasingly adopting digital shopping. Its business model leverages a network of resellers to reach customers beyond traditional channels, positioning it uniquely in the market.

This latest block deal and positive analyst outlook reflect continued investor interest in Meesho’s long-term prospects amid evolving market conditions. The company’s ability to scale users and enhance monetization will be critical as it competes with other players in India’s fast-growing online retail space.