Meesho shares fall 3% amid block deal buzz; Elevation Capital likely to sell stake worth ₹1,200 crore

Shares of Meesho fell as much as 3% in early trade on Tuesday after reports suggested that existing investor Elevation Capital is planning to pare its stake through a block deal worth around ₹1,200 crore.

The e-commerce stock declined to an intraday low of ₹177 on the BSE, down 3% from its previous close of ₹182.55. Around 4.45 lakh shares changed hands in early trade, taking the company's market capitalisation to ₹82,597 crore.

According to media reports, venture capital firm Elevation Capital, which held a 12.04% stake in Meesho as of June 2026, is looking to raise about ₹1,200 crore through the proposed share sale. The exact size of the stake on offer has not been disclosed.

The proposed sale comes a little over a month after Fidelity Investments trimmed its holding in the company. In June, the U.S.-based investment firm sold 5.98 crore shares, or around 1.31% of Meesho's equity, through a block deal valued at nearly ₹988 crore.

Selling pressure has intensified since the expiry of Meesho's six-month post-listing shareholder lock-in period on June 10. The stock has declined more than 8% over the past one month, with nearly 68% of the company's outstanding equity becoming eligible for trading after the lock-in expired, according to Nuvama Alternative & Quantitative Research. While the expiry does not necessarily trigger immediate selling, it allows early investors to monetise their holdings.

Separately, Meesho informed exchanges on Monday that its board has approved a fresh grant of employee stock options (ESOPs) under the ESOP 2024 Plan. The Nomination and Remuneration Committee (NRC), through a circular resolution passed on July 27, approved the grant of 20,562 stock options to eligible employees.

“The Nomination and Remuneration Committee of the Board of Directors of Meesho Limited by way of a circular resolution passed on July 27, 2026, has approved grant of 20,562 Stock Options to eligible employee(s) under the Company’s ESOP 2024 Plan,” it said in a BSE filing.

Under the ESOP 2024 Plan, each stock option is convertible into 49 fully paid-up equity shares with a face value of ₹1 each, taking the total number of shares covered under the latest grant to 10,07,538, subject to adjustments for corporate actions. The exercise price has been fixed at ₹1 per option.

In the June quarter (Q1 FY27), Meesho narrowed its consolidated net loss by 54% year-on-year to ₹132.8 crore from ₹289.4 crore a year earlier. The loss also improved sequentially from ₹166.3 crore reported in the March quarter, according to the company's exchange filing.

Revenue from operations rose 48% year-on-year to ₹3,712.8 crore, compared with ₹2,503.9 crore in the corresponding quarter last year, while also improving from ₹3,531.2 crore in Q4 FY26.

The Bengaluru-based e-commerce platform said it processed nearly 725 million orders during the quarter, equivalent to more than 90 orders every second, driven in part by productivity gains from its investments in artificial intelligence.