Meesho shares fall 5% for 2nd day after lock-in expiry, Rs 40,000 crore wiped off from m-cap since Dec high

Meesho share price

• Meesho shares fell 5 percent, extending losses after IPO lock-in expiry
• Stock has dropped over 35 percent from December high, nearing listing price
• Meesho's senior manager Megha Agarwal resigned; Milan Partani to take her role

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The shares of Meesho dropped another 5 percent on January 7 to near its listing price, extending losses to the second day after the firm's one-month shareholder lock-in period expired.

The shares of the company dropped to Rs 164.90 apiece on Thursday, extending losses for the third consecutive session. The stock has now fallen more than 35 percent from its December high of Rs 254.40 apiece, wiping off more than Rs 40,000 crore from the newly-listed company’s market capitalization.

In an exchange filing, Meesho announced that Megha Agarwal, General Manager – Business and a Senior Management Personnel of Meesho, on January 7 has tendered her resignation. Subsequently, Milan Partani, General Manager - User Growth and Content Commerce and Senior Management Personnel, will assume the role of General Manager – Commerce

Platform.

Lock-in expiry:

Earlier yesterday, the stock hit the 5 percent lower circuit after the one-month shareholder lock-in period came to an end. Around 10.99 crore shares, or approximately 2 percent of the company's outstanding equity, have become eligible for trading after the expiry of the lock-in period, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying. The said number of shares will be cumulatively worth around Rs 2,002.82 crore based on the stock’s previous closing price of Rs 182.24 per share.

However, this does not imply that all these shares will be offloaded in the market immediately. The expiry of the lock-in period simply means that these shares can now be traded.

Meesho's bumper market debut:

The stock had made a strong market debut on December 10, listing at Rs 162.50 apiece on NSE. This marked a premium of more than 46 percent from the IPO price of Rs 111 per share.

This came after the Rs 5,421-crore IPO of the e-commerce platform was subscribed 79 times. The stock is currently around 32 percent higher than its listing price.

How have Meesho shares performed since listing?

After listing, the stock sharply jumped 65 percent to hit a high of Rs 254.40 apiece on December 18, before losing steam. The stock has so far declined 35 percent since then, and is nearing its listing price.

What lies ahead?

Meesho has significantly improved its logistics efficiency over the last few years, said Abhinav Tiwari, Research Analyst at Bonanza, who noted that the e-commerce platform's cost per order reduced from Rs 55 in FY23 to Rs 46 in FY25.

"This improvement came from building its own logistics platform called Valmo and improving delivery density. At the same time, cash on delivery orders have reduced from more than 90% earlier to about 61% in the first half of FY 2026, which further helps reduce delivery failures and costs. Valmo has also increased delivery reliability in smaller towns, which supported the reduction of failed and repeat deliveries. By improving logistics without heavy subsidies, Valmo lowered operating risk and strengthened cash flows, making the business more capital efficient and closer to profitability," he said.

Despite these operational improvements, the stock has been under pressure recently. The key reason today is the expiry of the IPO lock in period, which has increased the supply of shares in the market and led to selling by early investors and pre-IPO shareholders.

"In addition, the stock had been trading at elevated valuation multiples compared to other consumer internet and retail peers, prompting profit taking. This lock in related supply, combined with broader risk off sentiment toward high valuation new age stocks, has resulted in valuation de rating, even as the underlying business performance remains largely intact," Tiwari said.

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