On January 7, Meesho’s stock fell an additional 5% to almost its listing price on the announcement of Megha Agarwal’s resignation as general manager.
Meesho Shares Extend Losses After Management Exit
Early on Thursday, the company’s shares fell to Rs 165 each, continuing losses for the third straight day. From its December peak of Rs 254.40 a share, the stock has now dropped more than 35%, wiping out more than Rs 40,000 crore from the market capitalization of the recently listed business.
Megha Agarwal, a senior management employee and general manager of business at Meesho, submitted her resignation on January 7, according to an exchange filing. Milan Partani, General Manager of User Growth and Content Commerce and Senior Management Personnel, will thereafter take over as General Manager of Commerce.
Lock-In Expiry Adds Selling Pressure
After the one-month shareholder lock-in period ended earlier yesterday, the stock fell 5%. After the lock-in period ended, around 10.99 crore shares, or about 2% of the company’s outstanding stock, were available for trade, according to Nuvama Alternative and Quantitative Research, which CNBC-TV18 cited. Based on the stock’s last closing price of Rs 182.24 per share, the total value of the aforementioned number of shares would be about Rs 2,002.82 crore.
This does not, however, mean that the market will sell all of these shares right now. Simply put, the lock-in period has ended, allowing for the trading of these shares.
📉 Meesho Stock Fall – Key Highlights
- Date: January 7
- Stock Decline: 5% in a single session
- Current Price: Rs 165 per share
- Market Cap Loss: Over Rs 40,000 crore
- Main Triggers: Lock-in expiry and senior management resignation
- Trend: Third consecutive day of losses
⚠️ IPO Lock-In Expiry Explained
- Unlocked Shares: 10.99 crore shares
- Share Supply: About 2% of total outstanding equity
- Estimated Value: Rs 2,002.82 crore
- Investor Action: Selling is optional, not mandatory
- Market Impact: Increased supply led to valuation pressure
- Sentiment: Profit booking in high-valuation new-age stocks
IPO Performance and Price Movement
On December 10, the stock had a robust market debut, listing on the NSE for Rs 162.50 per share. Compared to the IPO price of Rs 111 per share, this represented a premium of more than 46%. This followed 79 subscriptions to the e-commerce platform’s Rs 5,421-crore initial public offering. At the moment, the stock has increased by almost 32% from its IPO price.
The stock surged 65% after listing, reaching a peak of Rs 254.40 a share on December 18 before losing ground. Since then, the stock has dropped 35 percent and is getting close to its IPO price.
Operational Efficiency and Logistics Improvements
Meesho’s cost per order decreased from Rs 55 in FY23 to Rs 46 in FY25, according to Abhinav Tiwari, Research Analyst at Bonanza. “This improvement came from building its own logistics platform called Valmo and improving delivery density,” Tiwari said. In the first half of FY 2026, cash on delivery orders decreased from over 90% to around 61%, which significantly lowers delivery costs and failures.
Additionally, Valmo has improved delivery dependability in smaller towns, which has helped to lower the number of unsuccessful and repeat deliveries. Valmo reduced operational risk and boosted cash flows by enhancing logistics without significant subsidies, which made the company more capital-efficient and closer to profitability, he said.
Why the Stock Remains Under Pressure
The stock has lately been under pressure despite these operational improvements. The primary cause today is the IPO lock-in period’s expiration, which has increased the market’s share supply and prompted early investors and pre-IPO shareholders to sell. “In addition, the stock had been trading at elevated valuation multiples compared to other consumer internet and retail peers, prompting profit taking.” Even if the core company performance is essentially unchanged, this lock in linked supplies and a general risk-off attitude toward high-value new age companies have led to valuation down rating, according to Tiwari.
Frequently asked questions
1. What caused the 5% decline in Meesho shares on January 7?
Meesho shares dropped as a result of selling pressure when the IPO lock-in period ended, which increased the quantity of tradable shares, and Megha Agarwal’s departure as General Manager-Business.
2. Since December, how much has Meesho’s market value decreased?
Meesho’s stock fell more than 35% from its December high of ₹254.40, resulting in a loss of nearly ₹40,000 crore in market value.
3. Does the lock-in expiration imply an instant sale of all shares?
No, lock-in expiration only permits trading of shares. It does not imply that every qualified shareholder will sell their shares all at once.
4. Does Meesho have poor business performance?
Despite market volatility, Meesho’s operations have increased logistical efficiency, decreased delivery costs, and decreased reliance on cash on delivery, all of which point to solid fundamentals.
5. Is the price of Meesho shares still higher than its IPO?
Indeed. The stock is close to its listing price of ₹162.50, although it is still trading around 32% above its IPO price of ₹111 despite the recent decline.
conclusion
Rather than a loss in company fundamentals, lock-in-related selling pressure, management changes, and value de-rating are the main causes of Meesho’s recent stock fall. The company’s gains in cost management and logistical efficiency indicate that its long-term operational picture is solid, even if short-term volatility may persist. However, given the general risk-off mood in high-valuation new-age firms, investors should continue to exercise caution.
Disclaimer: This material is provided only for informative reasons and should not be interpreted as financial advice. Before making any investing choices, please speak with a financial adviser.
