Meesho Share Price: Meesho shares came under heavy selling pressure on Monday, December 22, extending losses for a second straight session as investors locked in profits after a sharp rally in the newly
listed e-commerce player earlier this month.
The stock had touched a record high of Rs 254.65 on Friday, but selling soon set in. In Monday’s session, Meesho shares plunged 10% to hit the lower circuit at Rs 202.05 on the BSE, taking the cumulative decline over the past two sessions to more than 14%.
Meesho’s IPO, priced at Rs 111 per share, made a blockbuster debut on Dalal Street on December 10, listing at a 46% premium to the issue price. The stock had continued to rally, ending up nearly 53% above the offer price at its peak.
Following Monday’s decline, Meesho has lost its multibagger tag achieved last week. Even so, the shares are still trading about 82% higher than their IPO price, leaving investors with substantial gains.
The recent rally of nearly 35% in Meesho shares last week came after a bullish call from UBS, which highlighted the company’s asset-light operating model, fast-expanding user base, and improving financial metrics. The global brokerage had initiated coverage with a ‘Buy’ rating and a target price of Rs 220.
“We believe Meesho’s asset-light, negative working-capital business model positions it well for sustained profitability, supported by a 30% NMV CAGR, rising user engagement and expanding order frequency through FY30,” UBS said in its report.
Meesho shares: Opportunity to bottom fish?
Harshal Dasani, Business Head at INVAsset PMS, said the correction reflects investor scrutiny of growth quality rather than valuation alone. While headline GMV growth remains strong, profitability metrics are still evolving, he noted. In a more selective market environment post-2025, investors are seeking clearer visibility on cash-flow breakeven instead of just top-line growth.
Dasani cautioned investors against entering solely based on the price correction.
Separately, Abhinav Tiwari, Research Analyst at Bonanza, stated last week that while Meesho is a strong long-term business, the current valuation renders the near-term risk-reward unattractive.
Meesho’s Rs 5,421-crore IPO was subscribed 79.02 times, underscoring strong investor interest. The issue, priced in the range of Rs 105–Rs 111, comprised a fresh issue of Rs 4,250 crore and an offer-for-sale of 10.55 crore shares worth Rs 1,171 crore at the upper band.
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