Meesho Share Price Dips 5% Amid GM Resignation, Lock-In Expiry

The shares of Meesho slipped by 5% on January 7, marking the third consecutive session of losses, as the company announced the resignation of its General Manager – Business. This downturn has brought the stock close to its initial listing price, reflecting a sharp correction from its December peak.

Market Performance

• Opening Price (Jan 7): Rs 165 per share
• Decline from December High: Over 35%
• Market Cap Wiped Off Since December High: Around Rs 40,000 crore
• Listing Price (Dec 10): Rs 162.50 per share

The stock has been under pressure after a stellar market debut. Following its December 10 listing at Rs 162.50, the shares had surged sharply, touching a high of Rs 254.40 on December 18, representing a 65% jump from the listing price.

Despite this early surge, the stock has steadily cooled down, and the recent fall has brought it nearly back to its listing level.

Key Company News

On January 7, Megha Agarwal, General Manager – Business and a senior management personnel, resigned from her position. The company announced that Milan Partani, General Manager – User Growth and Content Commerce, will take over her responsibilities as General Manager – Commerce.

This leadership change coincides with the expiry of the one-month shareholder lock-in period, which has contributed to the downward pressure on the stock.

Lock-In Expiry Impact

• Shares Eligible for Trading: 10.99 crore (~2% of outstanding equity)
• Cumulative Value at Previous Close: Rs 2,002.82 crore (based on Rs 182.24 per share)

The expiry of the lock-in does not automatically trigger mass selling. It simply allows early investors and pre-IPO shareholders to trade their shares if they choose to. However, such events often create short-term volatility, as seen in the 5% drop on Thursday.

Meesho’s Market Debut and Performance

Meesho’s IPO was one of the largest in recent times, raising Rs 5,421 crore and being subscribed 79 times. The listing opened at a significant premium of 46% above its IPO price of Rs 111 per share, reflecting strong investor interest in the e-commerce platform.

Since then, the stock has:

• Jumped 65% to a high of Rs 254.40 in mid-December
• Dropped 35% from that high, approaching the initial listing price
• Seen fluctuations driven by market sentiment, leadership changes, and lock-in expiry

Summary

Meesho’s stock has witnessed a sharp rise and correction within weeks of its listing. The recent fall is primarily linked to:

1. Resignation of General Manager – Business
2. Expiry of IPO lock-in period

While the stock has corrected from its highs, it remains a significant story in the stock market today, highlighting the dynamic nature of newly listed consumer internet companies.

For investors and market watchers, Meesho’s movements reflect both the volatility common in high-profile IPOs and the influence of corporate developments and shareholder actions on stock performance.

Source: Moneycontrol