Meesho share price: NMV is the total value of products sold on the platform after discounts, returns, refunds, and cancellations are subtracted. Instead of the gross headline figure, it represents the actual realized value of transactions.
Meesho share price: Following a positive statement from international investment firm UBS, shares of Meesho, the recently listed e-commerce company, surged on Wednesday, December 17. The stock reached an all-time high of ₹216.34 on the NSE after rising as much as 20% (the upper circuit limit). The IPO price of the shares was ₹111.
After UBS started covering the stock, there was a significant increase in its value. In contrast to other online companies, Meesho’s asset-light, negative working capital business model has also guaranteed positive cash flows, according to news reports from UBS.
Meesho’s model net merchandise value (NMV) CAGR is 30% over FY25–30e, according to UBS analysts, with contribution margin (CM) and adjusted EBITDA margin (as a percentage of NMV) reaching 6.8% and 3.2% by FY30e.
According to UBS, Meesho’s NMV will increase at a 30% compound annual growth rate (CAGR) from FY25 to FY30. This growth will be fueled by an increase in annual transacting users (ATUs) from 199 million to 518 million and an increase in annual ordering frequency from 9.2 to 14.7. Meanwhile, average order values (AOVs) will decrease from ₹274 to ₹233 as the company transfers logistics efficiency into the ecosystem.
What does an e-commerce platform’s NMV mean?
Net Merchandise Value, or NMV, is a term used in e-commerce platforms.
NMV: Explained
NMV represents the total value of goods sold on the platform after deducting cancellations, returns, refunds, and discounts. It reflects the actual realised value of transactions rather than the gross headline number.
NMV = GMV − returns − cancellations − refunds − discounts
Why NMV matters
- The metric gives a more accurate picture of true sales performance
- It helps assess customer quality and order fulfilment
- It is often used by investors and analysts to evaluate platform efficiency and growth.
NMV vs GMV
GMV (Gross Merchandise Value): Total value of all orders placed
NMV: Value of orders that are successfully completed and retained
For example, if an e-commerce platform reports a GMV of ₹1,000 crore but ₹150 crore worth of orders are returned or cancelled, the NMV would be ₹850 crore.
Meesho IPO and listing details
Shares of the company on December 10 made a stellar debut on the stock exchanges NSE and BSE by listing with a premium of more than 46% against the issue price of ₹111.
The stock started trading at ₹162.50, up 46.40% from the issue price on the NSE. Later, it jumped 55.58% to ₹172.70.
On the BSE, the stock made its market debut at ₹161.20, registering a jump of 45.22%.
Taking into account today’s all-time high level on the NSE, the scrip has rallied 74% from the issue price of ₹111.
Meesho IPO details
The initial public offering (IPO) of Meesho received 79.02 times subscription on the final day of the share sale.
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Corporate Connect Global. Please consult with a financial advisor before making any investment decisions.
