Meesho Shares Drop 10% After Hitting Record High

Meesho shares declined as much as 10% from their intraday high on Thursday, December 18, erasing all gains made earlier in the day. The stock had surged past ₹233.6 during morning trade, marking a 110% rise from its IPO price of ₹111.

At this level, Meesho’s market capitalisation crossed ₹1 lakh crore, reflecting strong investor interest since its listing. However, the sharp reversal highlights volatility in the counter following its recent debut.

IPO Performance and Listing Details

Meesho made its stock market debut on December 10, listing at a 46% premium to its issue price. The shares closed 53% higher on the first day of trade, signalling robust demand from investors.

The company’s ₹5,421 crore IPO received strong subscription across categories, with overall bids amounting to 79 times the shares on offer. The retail investor portion was subscribed over 19 times, while the qualified institutional buyer (QIB) segment saw subscription levels of 120 times.

Price Movement Since Listing

Since its listing, Meesho’s shares have gained over 30%, supported by positive sentiment and limited supply in the market. On Thursday, the stock initially extended its rally, pushing returns beyond 100% from the IPO price before reversing sharply.

At 10:50 AM, the shares were trading 4.1% lower at ₹207.42, compared to the day’s high of ₹233.6. The stock had risen 20% in the previous session, adding to the volatility observed since its debut.

Factors Driving Volatility

Meesho currently has a low free float, with only 6% of its total outstanding equity available for trading. This limited supply amplifies price movements in either direction, making the stock highly sensitive to buying and selling pressure.

The first major liquidity event will occur on January 6, when the one-month shareholder lock-in period ends. Until then, price swings are expected to remain pronounced due to the restricted availability of shares.

Read More: Meesho IPO Allotment Status.

Conclusion

Meesho’s sharp intraday reversal on December 18 underscores the volatility surrounding newly listed stocks with limited free float. While the company briefly crossed ₹1 lakh crore in market capitalisation and delivered over 100% returns from its IPO price, the subsequent decline highlights investor caution.

The upcoming lock-in expiry in January will be a key test for the stock’s stability and liquidity. Market participants will closely monitor trading patterns as Meesho navigates its early days on the exchanges.

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