Misho focuses as the firm enters the logistics business, incorporating a subsidiary

Shares of newly listed Meesho will focus on trading on Tuesday, January 13, after the company announced that it will incorporate a subsidiary, marking its entry into the logistics business.

“The main objectives of the newly incorporated subsidiary are to engage in the business of logistics service provider for movement of goods and carry out activities related to loading, unloading, in-transit storage, handling and trans-shipment of goods through third-party service providers, as incidental or ancillary, the company said in the Fi2 of Transportation Services on January 1.

Mishaw did not disclose the name of the subsidiary and said: “Upon incorporation of the entity, the company will have to make a separate announcement disclosing the name of the entity.” The share capital for the entity is Rs. 1 lakh, it added.

On Monday, BofA Securities initiated coverage on newly listed e-commerce firm Meesho Ltd with ‘Neutral’ rating and Rs. 14% higher than current levels, with a price target of 190. Logistics was identified as a monetization driver. BofA said Meesho’s ability to effectively serve value-focused users stems from its efforts to continuously reduce logistics costs. The brokerage noted that Meesho focuses on keeping logistics costs low for sellers rather than profiting from its logistics network, a strategy that helps sellers list a wide range of affordable products.

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The brokerage highlights Meesho’s advertising model and its approach to logistics as key elements shaping the company’s long-term outlook. At the same time, the brokerage’s neutral stance signals caution as the stock transitions from a listing-driven pace to closer scrutiny of execution and valuation.

Shares of Meesho continue to trade well above their IPO price. Share its Rs. 111 is about 46% higher than the issue price, though it is Rs. 36% slipped from a post-listing peak of 254. Shares of Meesho are down about 8% so far in 2026.

The company entered the stock market on December 10, listing at a premium to its issue price and closed 53% higher on its first day of trading. This share is Rs. 162, a 46% premium to the IPO price, and its first session at Rs. 170 was over.

Meesho’s Rs. 5,000-crore IPO was oversubscribed 79 times overall, with retail investors alone bidding 19 times the shares on offer, reflecting strong demand at the time of listing.

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