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Meesho’s shares plummet 23 per cent in three sessions after bumper debut

Meesho debuted on the bourses on December 10, with the stock listed at Rs 162.50 each on the NSE, a premium of Rs 51.50 (46.40%) over the issue price of Rs 111 per share. The BSE recorded a tad lower premium of Rs 50.20 (45.23%) over the issue price at Rs 161.20.

Meesho’s IPO was open for subscription between December 3-5 (AI image used for representation only)

Meesho’s shares took a hit on Tuesday (Dec 23) and dropped to 10 per cent, marking the third consecutive session of significant losses. This comes after the newly listed stock’s blazing start as it rallied 65 per cent in just four sessions post listing.

The shares of Meesho hit the lower circuit at Rs 185.34 on Tuesday before recovering some losses. The stock has plummeted over 23 per cent in just three sessions, dragging the market capitalisation below the Rs 85,000-crore mark. Meesho Limited shares closed at Rs 187.75 (down 7.08%) on the BSE on Tuesday and Rs 187.25 (down 7.15%) on the NSE.

The plunge comes as 4.9 million shares traded across nine block deals on the NSE at a 3-10 per cent discount on the previous closing price, according to LSEG data quoted by Reuters.

Meesho’s market debut

Meesho debuted on the bourses on December 10, with the stock listed at Rs 162.50 each on the NSE, a premium of Rs 51.50 (46.40%) over the issue price of Rs 111 per share. The BSE recorded a tad lower premium of Rs 50.20 (45.23%) over the issue price at Rs 161.20.

Meesho is an e-commerce marketplace which facilitates trade between retailers and customers. The company raised funds worth Rs 5,421.20 crore from its IPO. It raised Rs 4,250 crore via fresh issue of shares, and Rs 1,171 crore was raised through an offer for sale of stocks by existing shareholders.

In its DRHP, the company stated that it would utilise the majority of the funds raised through the fresh issue to expand its subsidiary, Meesho Technologies. This includes investments in cloud infrastructure, as well as marketing and brand initiatives.

“Meesho remains in the high-growth phase of the platform lifecycle and is expected to deliver 31 per cent FY25–28 revenue CAGR,” broking firm Choice International had said in a report.

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Meesho’s IPO was open for subscription between December 3-5. It was subscribed to over 79 times, driven by institutional investors who subscribed to the issue 120 times the portion allotted for them. In FY25, the company’s revenue rose to nearly Rs 9,390 crore from Rs 7,615 crore a year ago. Its losses narrowed to Rs 289 crore from Rs 3,942 crore.