Meesho Lock-in Expiry Looms: ₹60,000-Crore Worth of Stocks Set to Become Tradable

Meesho Stock May Face Turbulence as Lock-in Expiry Approaches

Shares of Meesho, a new-age tech stock, are expected to experience some volatility in the coming week as the lock-in on nearly 68% of its pre-IPO shares is set to expire on June 9, 2026. This would make the total stock worth approximately ₹60,000 crore tradable the very next day, according to estimates by JM Financial.

The potential outflows could be significant, with the brokerage estimating that even if only 10% of the company's stake is available for trade immediately post-expiry, the total outflows could reach ₹6,000 crore, surpassing the total IPO size of ₹5,400 crore. This high liquidity could put downward pressure on the stock.

Several pre-IPO shareholders, including private equity and venture capital firms, have held investments in Meesho for several years and are sitting on substantial unrealized gains. While some had partly liquidated their positions during the IPO, more may be eager to do so as the stock trades 60% above the IPO price currently.

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Meesho shares listed on the Indian stock market last year at an approximately 46% premium. However, since its listing in December 2025, the stock has declined in five of the seven months as investors remained concerned about its valuations, given that it is a loss-making entity. The stock has shed 5% in May and is down 4% in the two trading sessions of June.

Analysts advise caution while approaching Meesho stock in the run-up to the lock-in expiry, as past instances signal selling pressure around this event. Other new-age tech stocks like Eternal, Nykaa, Groww, and Lenskart had also declined upon their lock-in expiries, and Meesho could face a similar fate.

JM Financial remains bearish on the counter, citing Meesho's current premium valuation relative to broader India/global peers and its prioritization of growth over profitability. The management has refrained from giving any indicative timelines on operational break-even, despite its monopolistic position in value commerce in India. Its adjusted EBITDA loss came down meaningfully quarter-over-quarter in 4QFY26, but the brokerage believes that if in-sourcing levels remain at current levels, margin expansion through logistics cost efficiencies could be slower given Meesho's high dependence on two partners, Delhivery and Shadowfax.

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Khushi Mistry, Research Analyst at Bonanza, notes that the June 9, 2026 expiry is material as approximately 68% of equity (₹60,400 crore) becomes tradable, with PE/VC holding 58.3% and likely to trim. She adds that the fundamentals remain decent, but the stock trades approximately 75% above issue price, valuations are rich, and a supply overhang is real, warranting caution.