Shares of Meesho extended their decline for a second straight session on Thursday, falling nearly 10% over two days amid profit booking at higher levels. The sell-off seems to have been driven by profit-taking by some early investors and pre-IPO shareholders following the expiry of the one-month lock-in period for anchor investors on January 7.

Exchange data showed that about 11 crore shares, or roughly 2% of the company’s equity, became eligible for trading in the secondary market from January 7. The expiry of the lock-in period has increased the supply of shares available for public trading, adding to pressure on the stock.

After hitting the 5% lower circuit in the previous session, Meesho shares lost another 5% on Thursday on strong volumes. The stock slipped to an intraday low of ₹164.55 in early trade, with nearly 10 lakh shares changing hands, well above the two-week average volume of 6.84 lakh shares.

Meesho, which made its market debut on December 10, surged to a 52-week high of ₹254.65 on December 18, 2025, before undergoing a sharp correction in recent sessions, erasing over ₹40,000 crore in market capitalisation.

In a fresh development, Megha Agarwal, General Manager, Business and a Senior Management Personnel (SMP) of the company, has tendered her resignation effective January 7, 2026.

Separately, the company informed exchanges that Milan Partani, currently General Manager – User Growth and Content Commerce and a Senior Management Personnel (SMP), will assume the role of General Manager – Commerce Platform, while continuing to be designated as an SMP.

Stock up 48% over IPO price

Despite the recent sell-off, the e-commerce stock remains about 48% above its IPO price of ₹111. At the time of listing, Meesho’s market valuation was pegged at ₹50,096 crore, while its market capitalisation currently stands at around ₹74,264 crore.

The correction follows a strong post-listing rally, with the stock now showing signs of consolidation amid broader market volatility. After surging 53% on the listing day, Meesho rallied nearly 130% over the next seven sessions, sharply boosting shareholder wealth, including that of co-founder and CEO Vidit Aatrey, who entered the billionaire club. At current market price, Aatrey’s 11.1% stake, comprising around 47.25 crore shares, is valued at ₹7,774 crore.

Recently, Choice Institutional Equities initiated coverage on Meesho with a ‘Buy’ rating and a target price of ₹200. The brokerage values the company at 4x FY28E EV/revenue, saying that the stock trades at 2.4x FY28E EV/revenue, well below the peer average of 5.4x, suggesting significant upside potential as fundamentals continue to strengthen.

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