Shares of Indian e-commerce company Meesho fell sharply on Wednesday, dropping as much as 5% and hitting the lower circuit limit on the BSE. The decline came after the expiry of a one-month IPO lock-in period, which allowed nearly 110 million shares, valued at around ₹2,000 crore, to become freely tradable in the market.
The lock-in period, imposed on certain shareholders following Meesho’s recent public listing, restricts them from selling their shares immediately after the IPO. Once this period ends, these investors are free to sell their holdings, often increasing the supply of shares in the market and putting pressure on the stock price. Analysts say this is a normal market phenomenon after lock-in expiries and does not reflect the company’s long-term performance.
Despite the sharp drop, Meesho’s shares remain well above its IPO price of ₹111 per share. The stock had reached post-listing highs in December 2025, but the current correction has brought it down about 32% from those peaks. Market observers note that while some investors may sell immediately, others could hold onto their shares, meaning the market may stabilize in the coming days.
Financial analysts maintain a cautiously optimistic outlook on Meesho, citing its strong growth potential in India’s expanding e-commerce sector. They suggest that the stock’s short-term volatility due to lock-in expiry is not unusual, and long-term prospects remain positive given the company’s solid business fundamentals and market penetration.
Investors are advised to monitor market trends carefully and consider the stock’s fundamentals rather than making decisions based solely on technical fluctuations. Lock-in expiries often lead to temporary volatility, but Meesho’s growth trajectory and expanding user base continue to make it a promising player in the Indian e-commerce space.
