Synopsis : Meesho shares have fallen for eight consecutive trading sessions, losing nearly 17% of their value as investors brace for a major lock-in expiry on June 9. Analysts believe potential selling by early investors is weighing on sentiment despite the company's strong growth outlook.
Meesho Shares Continue Post-Listing Slide
Shares of e-commerce platform Meesho remained under pressure on June 4, extending losses for the eighth straight trading session and marking the stock's longest losing streak since its market debut in December 2025.
The stock declined another 5% during the session to ₹166.60 apiece, its lowest level since April, taking the cumulative decline over the past eight sessions to approximately 16.6%.
The continued weakness comes despite the company reporting a healthy quarterly performance, suggesting that factors beyond earnings are currently influencing investor sentiment.
Lock-In Expiry Sparks Investor Concerns
The primary concern weighing on Meesho shares is the upcoming lock-in expiry scheduled for June 9, 2026.
According to the company's prospectus, nearly 68% of Meesho's pre-IPO shareholding will become eligible for trading after the lock-in period ends. This excludes approximately 20% of shares that will remain locked until June 2027.
The development has triggered concerns that several early-stage investors, including private equity and venture capital funds, may choose to monetize a portion of their holdings after the lock-in restrictions are lifted.
Why Are Investors Worried?
Analysts believe the sheer size of the shares becoming eligible for sale could create temporary supply pressure in the market.
Shares worth nearly ₹54,000 crore are expected to come out of lock-in, significantly increasing the available floating stock.
According to Choice Institutional Equities, even if only around 10% of the newly unlocked shares are sold immediately, the potential secondary market supply could still amount to approximately ₹5,400 crore—roughly equal to the size of Meesho's entire IPO.
Such a large influx of shares can often weigh on prices, especially when investors anticipate profit-booking by early shareholders.
Historical Trend After Lock-In Expiries
The brokerage highlighted that several newly listed technology companies in India have experienced selling pressure following lock-in expiries.
This typically happens because early investors who entered at significantly lower valuations often look to partially exit their investments once restrictions are removed.
Given Meesho's strong post-listing performance and substantial unrealised gains held by many early investors, the market is pricing in the possibility of increased selling activity over the coming weeks.
Valuation Concerns Add to Pressure
Apart from the lock-in expiry, analysts also point to Meesho's premium valuation as a contributing factor.
Choice Institutional Equities noted that the company currently trades at around 6.1 times EV/Revenue, which is higher than many listed internet peers.
This premium valuation increases the likelihood of profit-booking, particularly when a large number of shares become eligible for trading simultaneously.
Analysts Remain Positive on Long-Term Growth
Despite the near-term concerns, analysts continue to remain optimistic about Meesho's long-term business prospects.
The company has continued to expand its seller ecosystem while maintaining strong user growth across India. Its asset-light business model and focus on value-conscious consumers remain key strengths.
Reflecting this confidence, Choice Institutional Equities has maintained its 'ADD' rating on the stock and retained a target price of ₹210 per share.
The brokerage continues to value the company at 4x FY28 estimated EV/Revenue, indicating confidence in its long-term growth trajectory.
Meesho Still Trades Well Above IPO Price
Although the recent correction has been sharp, the stock remains significantly above its IPO price.
Meesho debuted on the stock exchanges in December 2025 at ₹162 per share, a premium of nearly 46% over its IPO issue price of ₹111.
The stock later surged to a post-listing high of ₹254, making it one of the strongest-performing mainboard IPOs of 2025.
Even after the current correction, Meesho shares continue to trade roughly 50% above their IPO price, reflecting the substantial gains enjoyed by early investors.
What Investors Should Watch Next
The key trigger for the stock in the near term will be investor behaviour following the June 9 lock-in expiry.
If selling pressure remains limited, the stock could stabilize quickly. However, any large-scale exits by institutional investors may continue to weigh on share prices in the short term.
For long-term investors, market participants will closely monitor Meesho's ability to sustain growth, improve profitability, and expand its ecosystem as competition in India's e-commerce sector intensifies.
Disclaimer: This article is for informational and educational purposes only. The views and ratings mentioned are based on brokerage reports and analyst opinions and should not be considered investment advice. Investors should consult a SEBI-registered financial advisor before making any investment decisions.
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