On January 7, Megha Agarwal, General Manager – Business and Senior Management Personnel, resigned from Meesho, marking a significant change in the company’s leadership. Following her departure, Milan Partani, previously General Manager – User Growth and Content Commerce, will take over as the new General Manager – Commerce Platform, ensuring management continuity and a smooth transition of the company’s operations.
Impact Of Lock-in Expiry Meesho Share Price
- On January 6, Meesho stock hit the 5% lower circuit following the end of the one-month IPO shareholder lock-in period.
- Around 10.99 crore shares (≈2% of outstanding equity) became eligible for trading.
- These shares are valued at approximately ₹2,002.82 crore based on the previous closing price.
- Not all shares will be sold immediately; the expiry only allows them to be traded.
Meesho Share Price Journey Since Market Debut
| Category | Details |
|---|---|
| Market Debut | Listed on December 10 at Rs 162.50, a 46% premium over IPO price of Rs 111 |
| IPO Size | Raised ₹5,421 crore, subscribed 79 times |
| Performance Since Listing | Currently 32% higher than listing price |
| Post-Listing High | Jumped 65% to Rs 254.40 on December 18 |
| Recent Decline | Declined 35% since December high, approaching listing price |
Why Meesho Shares Are Slipping Despite Strong Business Fundamentals
Recently, Meesho’s stock has been facing pressure, and there are multiple factors responsible for this situation. To start with, the expiry of the IPO lock-in period resulted in a huge number of shares being released, which in turn raised the supply in the market. Early investors as well as pre-IPO shareholders decided to sell, which created additional selling pressure. Moreover, the stock was priced at high valuation multiples compared to its competitors, which led profit-hungry investors to sell.
When coupled with a general risk-off attitude towards high-valuation new-age stocks, it results in a scenario that calls for a valuation de-rating, even though the company’s core business is still strong. Thus, traders are exercising caution but at the same time are able to spot opportunities!
(With Inputs)