India's Meesho soared 54% in its market debut on Wednesday, notching a valuation of 769.7 billion rupees ($8.56 billion) as investors bet on the online e-commerce player's asset light, zero-commission model amid a strong year for public listings.
The stock listed at 162.5 rupees on the National Stock Exchange of India and rose to a high of 171.84 rupees, compared with its issue price of 111 rupees.
Meesho's listing joins other compelling debuts by technology-driven companies such as Groww and PhysicsWallah in a market in which more than 300 initial public offerings have raised $19.26 billion so far this year.
The year's fundraising is expected to surpass the $20.5 billion raised in 2024 and is on track to hit a record high.
Meesho's IPO frenzy highlights investors' appetite for fast-growing, new-age consumer companies, per analysts.
This is a "milestone moment for the homegrown e-commerce sector" in India, said Dhiraj Relli, managing director and chief executive officer of HDFC Securities.
While Meesho competes with giants such as Amazon.com and Walmart-owned Flipkart in India's online retail market, it has carved out a niche by offering low-priced products without charging sellers a commission.
The company, backed by Softbank and Peak XV Partners, received bids worth about $28 billion for its $604 million IPO amid strong interest from institutional buyers.