Shares of e-commerce platform Meesho Ltd. extended their losing streak on Thursday, June 4, falling 5% to ₹166.60, marking their eighth straight session of declines and hitting the lowest level since April 21. According to Mint, this represents the company's longest losing streak since listing in December 2025, with the sustained decline wiping out 16.6% of the stock's value. Trading activity remained elevated as nearly 83 lakh shares changed hands at an average price of ₹170.21 during the session.
The sustained decline is primarily attributed to the upcoming lock-in expiry scheduled for June 9, 2026, which will make nearly 68% of pre-IPO shares eligible for trading. As reported by Mint, this excludes nearly 20% of the company's share capital that will remain under lock-in until June 2027. According to Choice Institutional Equities, even if only around 10% of outstanding shares become immediately available for trading, potential secondary market outflows could still amount to nearly ₹5,400 crore, almost equivalent to the entire IPO size of ₹5,400 crore. Analysts expect this to trigger partial profit-booking given the company's premium valuation of around 6.1x EV/revenue relative to broader internet peers.
Despite the recent market correction, Meesho recently reported robust financial performance in the March quarter. As reported by CNBC TV18, the company achieved a 47.1% year-on-year increase in revenue to ₹3,531.2 crore, compared with ₹2,399.9 crore in the corresponding period last year. The company's net loss narrowed sharply to ₹166.3 crore from ₹1,391 crore a year earlier, though this improvement was partially aided by the exclusion of a one-time exceptional loss of ₹1,285 crore in the previous year.
The latest decline has brought Meesho's stock 22% from recent highs of ₹227, though it continues to trade at a premium of more than 50% to its IPO price of ₹111 per share. As reported by Mint, the shares made a blockbuster debut on December 10, listing at ₹162 apiece, a 46% premium over the issue price. Following the robust start, the stock maintained momentum in subsequent sessions, reaching ₹254 apiece and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025. Despite the near-term pressure, Choice Institutional Equities maintains a 'ADD' rating with a target price of ₹210, valuing the company at 4.0x FY28E EV/revenue.
