Why Have Meesho Shares Fallen Nearly 24% in Just Three Days?
Synopsis
In a concerning trend, Meesho Limited's stock has seen a significant decline of nearly 24% over three trading sessions, prompting investors to reassess their positions. With heavy trading volumes and ongoing selling pressure, what does this mean for the company and its investors moving forward?
Key Takeaways
Meesho's shares have dropped nearly 24% from their peak.
Heavy selling pressure affecting the newly listed stock.
Intense trading volumes indicate strong investor interest .
Market cap decreased to Rs 84,000 crore .
IPO was oversubscribed 79 times .
Mumbai, Dec 23 (NationPress) The stock of Meesho Limited has been on a downward trajectory for the third consecutive day, as substantial selling pressure continues to affect this newly listed share. On Tuesday, the stock plummeted by 8.75 percent during the trading day, amplifying the losses incurred over the previous two sessions.
Previously, on Monday, the shares had reached the 10 percent lower circuit limit, following a 5 percent decline last Friday.
This latest dip means that Meesho's shares have experienced a staggering 24 percent drop from their post-listing peak of Rs 254.
Intense trading activity was noted, with Meesho’s shares traded nearing the total volume of the previous day by midday. Approximately 7 crore shares, valued at over Rs 1,300 crore, exchanged hands, showcasing strong investor engagement despite the downward trend.
Market analysts suggest that the recent downturn may be fueled by profit-taking among investors following the rapid surge observed just after the stock's listing.
Meesho's shares had more than doubled from their IPO price of Rs 111 in just over a week, leading some investors to secure their profits.
This decline in share price has also affected the company's valuation, with Meesho’s market capitalization, previously exceeding Rs 1 lakh crore during the post-listing excitement, now reduced to approximately Rs 84,000 crore.
The IPO of Meesho had garnered a remarkable response, with the three-day offering, exceeding Rs 5,000 crore, being oversubscribed by 79 times overall.
The retail segment was subscribed more than 19 times, while qualified institutional buyers subscribed 120 times their allocated share.
As of Tuesday's latest trading, Meesho’s shares experienced a drop of 8.75 percent or Rs 17.64, settling at Rs 184.04.
Despite this recent correction, the stock remains about 68 percent higher than its initial issue price, ensuring that early investors are still in a profitable position.
Point of View
It’s essential to present an unbiased overview of market movements. The recent decline in Meesho’s shares reflects significant volatility in the stock market, compelling investors to evaluate their strategies. While the drop is concerning, it is also essential to consider the broader market context and the company’s strong initial response to its IPO.
NationPress
11 May 2026
Frequently Asked Questions
What caused the drop in Meesho's shares?
The decline is largely attributed to profit booking by investors after a significant rally post-IPO, coupled with sustained selling pressure in the stock.
How much have Meesho's shares fallen since their peak?
Meesho's shares have fallen nearly 24% from their post-listing high of Rs 254.
What was Meesho's IPO response?
Meesho's IPO was met with an overwhelming response, being oversubscribed by 79 times, with retail and institutional segments showing strong interest.
What is the current market capitalization of Meesho?
As of now, Meesho's market capitalization stands at approximately Rs 84,000 crore.
Is Meesho's stock still profitable for early investors?
Despite the recent decline, Meesho's stock is still trading about 68% higher than its issue price, keeping early investors in profit.
