Meesho Shares Slide Nearly 24 Per Cent Over Three Trading Sessions

Mumbai: Shares of Meesho Limited continued their downward trajectory for the third consecutive trading session on Tuesday, as persistent selling pressure weighed on the recently listed stock.

During the day, the shares declined by as much as 8.75 per cent, extending losses after the stock had hit a 10 per cent lower circuit on Monday and fallen 5 per cent in the previous Friday’s session.

With the latest fall, Meesho’s stock has dropped close to 24 per cent from its post-listing peak of Rs 254.

The counter also witnessed heavy trading activity. By noon, the volume traded was nearly equal to that recorded on Monday. Around 7 crore shares, valued at more than Rs 1,300 crore, had changed hands, indicating strong investor participation despite the sharp decline.

Market participants attributed the recent correction largely to profit booking following the steep rally seen soon after listing. Meesho’s shares had surged more than 100 per cent from their IPO issue price of Rs 111 within just over a week, prompting investors to book profits.

The decline has also impacted the company’s market valuation. After briefly crossing the Rs 1 lakh crore mark during the post-listing rally, Meesho’s market capitalisation has now slipped to approximately Rs 84,000 crore.

Meesho’s initial public offering had attracted robust investor interest. The Rs 5,000-crore issue was subscribed 79 times overall during the three-day bidding period. The retail investor portion was subscribed more than 19 times, while qualified institutional buyers subscribed 120 times of their allotted quota.

At the latest trade on Tuesday, Meesho shares were down 8.75 per cent, or Rs 17.64, trading at Rs 184.04.

Despite the recent correction, the stock remains about 68 per cent above its issue price, leaving early investors with substantial gains.

—With inputs from IANS