The decline comes a day after a one-month shareholder lock-in ended, making a fresh tranche of Meesho shares eligible for trading.
As per the market data, up to 110 million shares, or about 2% of the company’s outstanding equity, became tradeable. The increase in free float revived near‑term supply concerns, weighing on the stock even as brokerages maintained a constructive view on the company’s longer‑term prospects.
Management changes at Meesho
In a regulatory filing, Meesho informed exchanges that Megha Agarwal, General Manager – Business and a Senior Management Personnel, tendered her resignation from the company on January 7, 2026.
In a separate announcement, the company said Milan Partani, General Manager – User Growth and Content Commerce, will assume the additional role of General Manager – Commerce Platform, while continuing to be classified as Senior Management Personnel.
The management updates seemed to have added to investor caution amid an already weak trading session for the stock.
Shareholder lock-in expiry weighs on stock
Wednesday’s decline was primarily attributed to the lock-in expiry, which increased the number of shares available for trading. While such expiries don’t invariably trigger instant selling, they often spark concerns about near-term supply pressure. Nuvama Alternative & Quantitative Research had previously pointed out that a significant tranche of shares would become tradeable post expiry.
What should investors do now?
Despite the near‑term pressure on the stock, brokerage commentary on Meesho remains largely constructive.
Global brokerage UBS has initiated coverage on Meesho with a ‘Buy’ rating and a target price of Rs 220, citing the company’s asset‑light business model, negative working capital cycle, and consistent cash flow generation. UBS expects Meesho’s net merchandise value to grow at a 30% compound annual rate over FY25–30E, driven by a sharp rise in annual transacting users from 199 million to 518 million, along with higher ordering frequency, even as average order values moderate.
Domestic brokerage Choice Institutional Equities has also struck an optimistic tone, stating that Meesho is well-positioned to monetise the shift toward value‑focused e‑commerce through its zero‑commission, low‑AOV, discovery‑led platform catering to Tier‑2 and Tier‑3 users. Choice highlighted the company’s long‑tail assortment, content‑led demand, and logistics integration, and has set a target price of Rs 200, implying significant upside from the IPO price.
While short‑term volatility may persist amid increased tradable supply, brokerage assessments indicate that institutional focus remains on Meesho’s scale‑up potential and business fundamentals over the longer horizon.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
