Meesho shares saw a selling frenzy after reaching a record high of ₹254.65 on Friday. The price of Meesho shares fell 10% on Monday to reach the lower price range of ₹202.05 on the BSE, increasing the two-day losses to more than 14%.
Monday, December 22, saw a lot of selling pressure on Meesho shares, extending losses to the second day in a row as investors booked profits after the new-age e-commerce player had a fantastic run after its debut in the Indian stock market earlier this month.
Meesho shares saw a selling frenzy after reaching a record high of ₹254.65 on Friday. The price of Meesho shares fell 10% on Monday, reaching the lower price range of ₹202.05 on the BSE.
On December 10 of this month, Meesho's IPO, priced at ₹111, made a spectacular debut on Dalal Street, listing at a 46% premium over the offer price. The shares finished 53% over the offer price due to sustained gains.
Meesho's multibagger stock classification from last week has been lost amid today's decline. Nonetheless, Meesho shares are still 82% higher than their IPO price, offering investors substantial gains.
Meesho shares saw a 35% increase last week after UBS issued a bullish call, citing the company's asset-light operating model, growing user base, and improved financial indicators as justifications for its optimistic outlook. A 'Buy' call with a target price of ₹220 was assigned by the global brokerage.
According to UBS's study, "We think 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."
Meesho says: Is there a chance to bottom fish?
The decline in Meesho, according to INVAsset PMS Business Head Harshal Dasani, is a result of investor resistance to growth quality rather than merely valuation optics.
Profitability measures are still changing, but headline GMV growth is still robust. He continued, "Investors are demanding clearer line-of-sight on cash-flow breakeven rather than top-line momentum alone in a market that has turned far more selective since 2025."
According to Dasani, prudence is necessary for investors, particularly those who are thinking about entering just because of the price revision.
Meesho is a solid long-term business, but the current price makes the short-term risk-reward unappealing, according to Abhinav Tiwari, Research Analyst at Bonanza, who stated last week.
Meesho's ₹5,421-crore initial public offering (IPO) attracted 79.02 subscriptions, indicating remarkable investor enthusiasm. Priced between ₹105 and ₹111, the issue included an OFS of 10.55 crore shares valued at ₹1,171 crore at the upper band and a new issue of ₹4,250 crore.
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