Meesho’s stock fell another 5% on Jan 7, pulling back close to its listing price after the one‑month lock‑in period ended.
Share price slide
The share price dropped to ₹164.90, marking the third straight session of decline. Overall, the stock is down more than 35% from its December high of ₹254.40, erasing over ₹40,000 crore in market value.
Lock‑in expiry and new supply
When the lock‑in ended, about 10.99 crore shares (roughly 2% of Meesho’s total equity) became free to trade. At the previous close of ₹182.24, those shares were worth around ₹2,003 crore. The expiry doesn’t force holders to sell, but the larger pool of tradable shares often prompts some selling pressure.
Recent management change
Meesha’s General Manager of Business, Megha Agarwal, resigned on Jan 7. Milan Partani, who runs User Growth and Content Commerce, will now lead the Commerce platform.
How the stock performed after debut
- Listed on Dec 10 at ₹162.50, a 46% premium to the IPO price of ₹111.
- Reached a peak of ₹254.40 on Dec 18 (up 65% from the listing).
- Since then, the price has slipped about 35% and is now near the listing level.
Operational improvements
Analyst Abhinav Tiwari notes that Meesho’s cost per order fell from ₹55 in FY23 to ₹46 in FY25, thanks to its in‑house logistics arm Valmo and better delivery density. Cash‑on‑delivery orders also fell from over 90% to about 61% in the first half of FY26, reducing failed deliveries and costs.
Why the stock is under pressure
The lock‑in expiry added new shares to the market, prompting early investors and pre‑IPO shareholders to sell. Additionally, Meesho’s valuation multiples were higher than many peers, leading to profit‑taking and a broader “risk‑off” mood toward high‑valuation tech stocks.
Bottom line for investors
While the company’s logistics upgrades improve cash flow and move it closer to profitability, the recent price dip is mainly a market reaction to the lock‑in expiry and valuation concerns. The underlying business fundamentals remain largely intact.
Remember, this is just an overview, not a recommendation. Do your own research and consider your risk tolerance before making any investment decisions.