Meesho shares hit lower circuit as one-month share lock-in expires; check details

Meesho shares are in the spotlight today as the company sees the expiry of the shareholder lock-in period. At the opening bell, Meesho shares opened over 4% lower to trade around ₹174.5 apiece on NSE. At 9:30 am, Meesho stock hit 5% lower circuit with a day low of ₹173.13 and a day high of ₹180 per share.

The sharp fall in the stock price comes as a one-month shareholder lock-in expires today. Meesho IPO opened for subscription between 3 to 5 December, followed by listing on December 10. As a result, a 1-month lock-in period has expired today for anchor investors. Meesho IPO saw an overwhelming response from investors. The IPO saw an overall subscription of 81.76 times, with retail investor quota subscribing 19.89 times.

Around 2% or 109.9 million shares of the company’s outstanding shares, worth around ₹2,000 crore, have become eligible for trading today, which investors can decide to sell or hold on. Despite the sharp decline in the stock price today, Meesho stock still trades above its IPO issue price of ₹111 per share.

Meesho, which operates an e-commerce platform, made a strong debut in the stock market as its shares listed at over 46% premium at ₹162.50 per share on NSE. After listing, the stock goes on to make post-listing high of ₹254.40 per share on 18 December. However, the stock has corrected from its recent all-time high by around 31% amid profit booking as investors tried to cash out after a sharp surge in the stock price within a short span of less than 1 month.

Meesho stock performance

After the blockbuster listing, Meesho shares have seen a strong surge in the initial few days, and the stock has gone on to hit a post-listing high of 254.40 apiece, but since then, Meesho shares have seen strong profit booking. From the all-time high, the stock is down nearly 32% and down nearly 4% in the past week.