Meesho Shares Experience Eighth Consecutive Decline in Longest Post-IPO Sell-Off, What's Behind the Trend.

Meesho Shares Plummet to Lowest Level Since April

Meesho, an e-commerce firm, saw its shares decline for the eighth consecutive session on Thursday, June 4, with a 5% drop to ₹166.60 apiece. This marks the lowest level since April and has resulted in a 16.6% erosion of the stock's value. The company's shares have been under pressure since listing in December 2025, with this decline marking its longest losing streak.

Despite delivering a solid performance in the March-ended quarter, investor sentiment remains weak ahead of the lock-in expiry scheduled for June 9, 2026. Approximately 68% of Meesho's pre-IPO shareholding is set to come out of lock-in on June 9, 2026, 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 June 9, 2027, as disclosed in the prospectus.

Analysts attribute the temporary downward pressure on the stock to early PE and VC investors potentially offloading their holdings, sitting on significant unrealised gains. According to Choice Institutional Equities, even if only 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 Meesho's IPO size of ₹5,400 crore.

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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, Choice Institutional Equities 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. Choice Institutional Equities continues to value Meesho at 4.0x FY28E EV/revenue and has maintained its 'ADD' rating with a target price of ₹210.

Meesho's share price has declined 22% from recent highs, bringing the stock to ₹166.60 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.