Meesho shares are in trouble. Again.
For the second straight trading day, the stock hit the lower circuit. Investors are clearly nervous. In less than a month after listing, massive value has already been wiped out.
From its recent peak, the stock is now down more than 35%. Market value worth over ₹40,000 crore has vanished.
Two reasons are driving this fall.
What Happened Today
On the BSE, Meesho shares were locked at a 5% lower circuit at ₹164.55.
Selling pressure stayed strong through the session. There were hardly any buyers. This comes just a day after the stock had already fallen sharply.
One reason was already known. Today, another negative trigger came in.
Reason 1: Lock-In Period Ends
A day earlier, the stock cracked because the one-month lock-in period ended for a chunk of shares.
According to Nuvama Alternative & Quantitative Research, around 10.99 crore shares of Meesho became free to trade. That is roughly 2% of the company’s outstanding equity.
At the January 6 closing price of ₹182.30, these shares were worth about ₹2,003 crore.
Just to be clear, lock-in expiry does not mean shares will definitely be sold. It only means holders are now allowed to sell. But markets usually react first and ask questions later.
Reason 2: Senior Executive Resigns
Today’s fall had a fresh trigger.
Meesho informed the exchanges that its General Manager (Business) and senior management executive Megha Agrawal has resigned. This news added to the nervousness.
Leadership exits, especially soon after listing, rarely go down well with investors. The timing made things worse.
A Quick Look at the IPO Journey
Meesho’s ₹5,421 crore IPO had priced shares at ₹111.
The stock listed at a strong 46% premium. Optimism was high. Within days, the stock rallied hard and touched a record high of ₹254.65 on December 18.
But the ride didn’t last.
Before that rally even settled, the stock had already slipped to ₹153.95 on December 12, marking its post-listing low. Volatility has been extreme from day one.
What Analysts Are Saying
Bonanza research analyst Abhinav Tiwari says that operationally, Meesho has made solid improvements over the last few years.
Logistics efficiency has improved a lot. Cost per order came down from ₹55 in FY23 to ₹46 in FY25. This was driven by Meesho building its own logistics platform, Valmo, and improving delivery density.
There’s more.
Cash-on-delivery orders have fallen sharply. From nearly 90% earlier, they dropped to 61% in the first half of FY26. That helped reduce failed deliveries and costs.
Valmo is also expanding fast in smaller cities. And all this happened without heavy subsidies. That reduced operating risk and strengthened cash flows. Profitability doesn’t look too far, at least on paper.
Then Why Is the Stock Falling So Hard?
Despite these operational positives, the stock has been under pressure.
According to Abhinav, today’s fall is mainly due to lock-in expiry, which increases potential supply in the market. On top of that, Meesho’s valuation is still high compared to other consumer internet and retail peers.
That combination often leads to profit booking. Especially in a weak or cautious market.
The Big Picture
Meesho’s business story hasn’t collapsed overnight. But stock markets don’t wait.
Lock-in expiry. A senior resignation. High valuation. All of it came together at the wrong time.
For now, sentiment is weak. Investors are watching closely to see if stability returns, or if more pain is left.
