E-commerce firm Meesho came under selling pressure in Wednesday’s session, January 7, with its shares falling 5% to the lower price band of ₹173 apiece on the NSE, as the supply of shares in the secondary market spiked following the expiration of the one-month shareholder lock-in period.
The one-month lock-in period for pre-IPO investors who had invested in the company before its public listing in December 2025 ended today, making up to 109.9 million equity shares, or 2% of the company’s outstanding equity, eligible for trading after the expiry of the lock-in period, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying.
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.
This restriction aims to provide stability to the newly-listed company’s stock price and boost investor confidence during the early stages of trading.
Lock-in periods vary in duration, ranging from a few months to several years, depending on stock exchange regulations and the terms set by the company and its underwriters.
As the lock-in period expires, restricted shareholders become eligible to trade their shares in the secondary market, potentially increasing liquidity. However, there is a risk that some shareholders may immediately offload their holdings, adding downward pressure to the stock price.
Meesho share price trend
The shares made a blockbuster debut on December 10, listing at ₹162 apiece, a 46% premium over the issue price of ₹111. Following a robust start, the shares maintained their winning momentum in subsequent sessions, reaching ₹254 apiece and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025.
However, the rally fizzled out in recent sessions, as investors appeared to lock in gains, leading the stock to drop sharply. Yet, it remains up 56% over the issue price. From the recent highs, it has corrected 32%.
Commenting on Meesho stock, Abhinav Tiwari, Research Analyst at Bonanza, said that the key reason today is the expiry of the IPO lock-in period, which has increased the supply of shares in the market and led to selling by early investors and pre-IPO shareholders. In addition, the stock had been trading at elevated valuation multiples compared to other consumer internet and retail peers, prompting profit taking, he opined.
“This lock-in related supply, combined with broader risk-off sentiment toward high valuation new-age stocks, has resulted in valuation de-rating, even as the underlying business performance remains largely intact.”
Incorporated in 2015, Meesho Limited is a multi-sided e-commerce platform in India connecting consumers, sellers, logistics partners, and content creators. Its marketplace offers affordable products to consumers and a low-cost growth platform for sellers.
The ₹5,421-crore IPO, which was open for subscription from December 03 to December 05, received a healthy response from investors, being subscribed over 82 times, driven largely by strong demand from institutional investors.
The company reported a net loss of ₹3,942 crore in FY25, mainly due to one-time transition-related taxes. However, losses narrowed to ₹700.72 crore in H1 FY26, while revenues rose to ₹5,577.54 crore from ₹4,311.29 crore a year earlier.
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