Meesho's shares dropped up to 5% on Wednesday, trading at ₹173.20 after a small batch of its stock became free to sell.
Why the price fell
On Wednesday, 110 million shares – about 2 % of the company's total equity – left the one‑month lock‑in period. This means the shares can now be bought or sold on the open market. The drop doesn’t mean everyone is selling; it just adds new supply.
Recent performance
Since the IPO, Meesho’s price is still about 56 % above the issue price of ₹111, but it is down roughly 32 % from its peak of ₹254 after the listing.
What analysts say
Brokerages remain positive on the long‑term outlook:
- UBS gave the stock a "Buy" rating with a target of ₹220, citing the company’s asset‑light model and steady cash flow.
- Choice Institutional Equities set a target of ₹200, pointing to growth in users from 199 million to 518 million by FY30 and higher earnings from ads, fintech and logistics.
Is the dip a buying chance?
Investors are weighing whether the 5 % pull‑back is just a short‑term reaction to the lock‑in expiry or a chance to enter before Meesho’s next growth phase.
Remember, this is just analysis, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.