E-commerce firm Meesho saw its shares rebound 5% to the day’s high of 173 apiece on the NSE during Friday’s session, January 9, following a three-day sell-off, during which the stock had lost a cumulative 10%, signaling buying interest at lower levels.
The recent decline in Meesho stock appears to have been triggered by the expiration of the one-month lock-in period for pre-IPO investors, which increased the supply of shares in the secondary market, coupled with new disclosures regarding senior management changes.
The one-month lock-in period for pre-IPO investors, who had invested in the company before its public offering in December 2025, ended on Wednesday, reportedly freeing 109.9 million equity shares, or 2% of the company’s outstanding equity.
A lock-in period in an IPO refers to a predetermined timeframe during which certain shareholders—often including the company, promoters, and pre-IPO investors—are restricted from selling their shares in the open market.
Additionally, in a regulatory filing on January 7, Meesho informed exchanges that Megha Agarwal, General Manager – Business and a Senior Management Personnel, had tendered her resignation from the company, effective the same day.
In a separate filing, Meesho informed that Milan Partani, User Growth and Content Commerce, and Senior Management Personnel (“SMP”) of the company, will now assume the role of General Manager – Commerce Platform while continuing as SMP of the company.
JM Financial sees limited upside in Meesho shares
While the stock has experienced significant volatility recently, domestic brokerage JM Financial expects limited upside going forward, citing the sharp post-listing run-up in shares.
In its latest note, the brokerage initiated coverage on Meesho stock with a ‘Reduce’ rating, assigning a target price of 170.
Although JM Financial remains optimistic about the company’s long-term growth prospects and potential for higher profitability, stretched valuations lead the brokerage to foresee limited upside in the shares.
The brokerage expects Meesho to continue being a flagbearer of Indian e-commerce and the first digital commerce platform for a large segment of the Indian population.
It also noted that with the advent of Valmo, Meesho has further reduced costs charged to sellers, thereby opening up e-commerce categories that were previously considered unviable.
Meesho share price down 32% from recent highs
Although the stock attempted a recovery in today’s session, it is still down 32% from its recent highs. Nevertheless, the strong post-listing rally has kept the stock trading ₹111 apiece”>56% above its IPO price of 111 apiece.
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 its momentum in subsequent sessions, reaching 254 apiece and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025.
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