Meesho shares sink for eighth consecutive session in longest post-listing sell-off. What’s driving the decline?

E-commerce firm Meesho saw its shares remain under pressure for the eighth straight session on Thursday, 4 June, falling another 5% to ₹166.60 apiece, the lowest level since April. The sustained decline has wiped out 16.6% of the stock’s value and also marked its longest losing streak since listing in December 2025.

Despite the company delivering a solid performance in the March-ended quarter, investor sentiment remained weak ahead of the lock-in expiry scheduled for 9 June 2026.

Around 68% of Meesho’s pre-IPO shareholding is set to come out of lock-in on Tuesday, making shares worth nearly ₹54,000 crore eligible for trading from the following day. This excludes nearly 20% of the company’s share capital, which will remain under lock-in until 9 June 2027, as disclosed in the prospectus.

Analysts said this is creating temporary downward pressure on the stock, as several early PE and VC investors may look to offload their holdings while sitting on significant unrealised gains.

According to domestic brokerage firm Choice Institutional Equities, even if only around 10% of the company’s outstanding shares become immediately available for trading after the lock-in expiry, potential secondary market outflows could still amount to nearly ₹5,400 crore, almost equivalent to the entire IPO size of Meesho at ₹5,400 crore.

Historically, listed new-age technology companies in India have witnessed significant secondary supply and downward pressure on shares after lock-in expiries.

Given Meesho’s premium valuation of around 6.1x EV/revenue relative to broader internet peers, along with substantial unrealised gains held by several early-stage investors, the brokerage expects the upcoming lock-in expiry to trigger partial profit-booking.

Despite expecting the stock to remain under pressure in the near term, the brokerage continues to remain bullish on the company’s growth prospects, supported by strong user-led scale-up and continued expansion of its seller ecosystem.

Accordingly, the brokerage continues to value Meesho at 4.0x FY28E EV/revenue and has maintained its ‘ADD’ rating with a target price of ₹210.

Meesho share price down 22% from recent highs

The latest crash has brought the stock 22% from the recent high of ₹227 apiece. Nevertheless, the strong post-listing rally has kept the stock trading 50% above its IPO price of ₹111 apiece.

The shares made a blockbuster debut on December 10, listing at ₹162 apiece, a 46% premium over the issue price. Following the robust start, the stock maintained its momentum in subsequent sessions, reaching ₹254 apiece and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025.

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