The shares of the recently listed e-commerce platform Meesho saw a sharp movement on Wednesday, dropping as much as 5% to reach Rs 173.20 on bourses. The stock hit lower circuit in the morning trade today. While the company has had a strong run since its market debut, a specific technical event on January 7 has triggered fresh activity in the stock.
The 110-million share unlock
According to an analysis by Nuvama Alternative & Quantitative Research, the one-month shareholder lock-in period for Meesho expired today. This means a fresh tranche of 110 million shares which accounts for 2% of the company’s total outstanding equity has now become eligible for trading in the open market.
It is important to understand the mechanics of this event. As the Nuvama report clarifies, the expiry of a lock-in period does not automatically mean these shares are being sold. It simply means that pre-IPO shareholders and early investors, who were previously restricted, now have the option to trade their holdings.
Market context and IPO performance
Even with the current pullback, Meesho shares are still trading roughly 56% above their original IPO issue price of Rs 111. However, the stock has cooled down by nearly 32% from the post-listing peak of Rs 254.
The company’s journey on the bourses began on December 10, when it listed at a 46% premium (Rs 162) and closed its first day up by 53%. The initial public offering itself was a massive hit, seeing a subscription of 79 times, with retail investors leading the charge.
What the experts are saying
Despite the immediate pressure caused by the increase in tradable supply, professional market observers remain focused on the company’s internal metrics. Nuvama’s report highlights that while lock-in expiries often lead to short-term price swings, the actual impact usually depends on the firm’s fundamentals.
Additionally, Nuvama noted that between January 6 and April 30, 2026, about 96 companies will see various lock-in periods end, involving shares worth billions. For Meesho, this is a standard phase of the listing lifecycle that investors are watching closely to see how the market absorbs the additional supply.
UBS on Meesho: Strong growth trajectory
Global brokerage UBS initiated coverage on Meesho with a ‘Buy’ rating and a 12-month target price of Rs 220. In their report during mid December, UBS analysis highlighted that the company’s asset-light model, negative working capital cycle, and consistent cash flow generation.
According to the UBS report, the company’s Net Merchandise Value is expected to grow at a 30% compound annual rate between FY25–FY30. This projection is based on an expansion in annual transacting users from 199 million to 518 million and a higher frequency of orders. While they expect average order values to moderate from Rs 274 to Rs 233, the firm maintains that the overall growth trajectory remains strong.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.