This New-Age Stock Hits 5% Lower Circuit After Lock-In Expiry, Slides Sharply From Recent Highs

Mumbai: Shares of Meesho Ltd., the newly listed e-commerce platform, came under heavy selling pressure on Wednesday, hitting a 5% lower circuit after the expiry of its one-month shareholder lock-in period.

The stock declined sharply as a fresh supply of shares entered the market following the lock-in expiry. Nearly 11 crore shares, accounting for around 2% of the company’s outstanding equity, became eligible for trading, triggering profit booking by early investors and short-term traders.

Meesho had made a strong market debut in December, listing at a healthy premium to its issue price and rallying further to touch its post-listing peak during the month. However, the stock has since witnessed sustained pressure and is now down nearly 32% from its December high, trading close to its original listing price.

Market participants pointed out that such corrections are common in newly listed stocks when lock-in restrictions end, as supply dynamics temporarily outweigh demand. Despite the sharp fall, the stock continues to trade above its IPO price, reflecting underlying investor interest in the company’s long-term business potential.

Analysts believe near-term volatility may persist as the market absorbs the additional shares, while future price movement will depend on broader market sentiment, company execution, and upcoming disclosures.