Shares of e-commerce platform Meesho witnessed a notable recovery during Friday's trading session on January 9, bouncing back by 5% to hit an intraday high of ₹173 per share on the National Stock Exchange (NSE). This rebound followed a sharp three-day sell-off that had eroded 10% of the stock's value, indicating renewed buying interest at lower price levels.
What Triggered the Recent Sell-Off?
The recent pressure on Meesho's stock price appears to stem from two key developments. The primary trigger was the expiration of the one-month lock-in period for pre-IPO investors on Wednesday. These investors had backed the company before its public offer in December 2025. The end of this lock-in freed up approximately 109.9 million equity shares, representing about 2% of the company's total outstanding equity, thereby increasing the supply of shares in the secondary market.
Concurrently, the company disclosed significant changes in its senior management. In a regulatory filing on January 7, Meesho informed the exchanges that Megha Agarwal, General Manager – Business and a Senior Management Personnel, had resigned from her position, effective immediately. In a separate filing, the company announced that Milan Partani, who handles User Growth and Content Commerce, would now take on the additional role of General Manager – Commerce Platform while continuing as a Senior Management Personnel.
Brokerage View: JM Financial Advises Caution
Despite the stock's attempt at a recovery, domestic brokerage firm JM Financial has expressed a cautious outlook. The brokerage has initiated coverage on Meesho with a 'Reduce' rating and set a target price of ₹170 per share.
In its research note, JM Financial acknowledged Meesho's strong long-term growth potential and its position as a flagbearer of Indian e-commerce, often being the first digital commerce platform for many Indians. It also noted positive developments like the launch of Valmo, which has reduced costs for sellers and opened up new e-commerce categories.
However, the brokerage believes that the sharp post-listing rally has led to stretched valuations, leaving limited room for significant upside in the near term. The stock had delivered a blockbuster debut on December 10, listing at a 46% premium to its IPO price of ₹111, and later soared to a high of ₹254 per share.
Current Stock Performance and Context
While the 5% rebound provided some relief to investors, Meesho's share price remains approximately 32% below its recent peak of ₹254. Nevertheless, the strong initial performance means the stock is still trading at a healthy 56% premium to its IPO price.
The lock-in period, a standard feature in IPOs, is designed to prevent a sudden flood of shares in the market immediately after listing. It restricts promoters, company insiders, and certain pre-IPO investors from selling their holdings for a specified duration, thereby supporting price stability.
Investors are advised to consult with certified financial experts before making any investment decisions related to Meesho or any other stock, given the inherent volatility and risks associated with equity markets.
