Meesho shares fall 5% as lock-in period ends

Meesho shares dropped 5% on December 7 to 173.20 rupee (US$1.92) as a lock-in period ended, making 110 million shares, or 2% of its outstanding equity, available for trading.

Meesho, an Indian ecommerce platform, listed on the stock exchange on December 10, 2025, at a premium to its IPO price.

The stock is up about 56% from its IPO price of 111 rupee (US$1.23), but has fallen 32% from a post-listing high of 254 rupee (US$2.82).

The lock-in expiry has raised concerns about increased share supply in the short term, analysts said.

Brokerages, including UBS and Choice Institutional Equities, have issued positive coverage on Meesho, setting target prices above current trading levels.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Meesho’s unlock is about 2% of equity, small versus typical six-month unlocks after IPOs

Meesho, an Indian ecommerce platform, has 110 million shares unlocking on January 6, 2026 1. This equals about 2% of its total equity 2. Similar windows for recent listings often free up over 50% 2.
These are anchor investor shares under SEBI’s staggered lock-in 3. Anchor investors are large institutions that get shares before listing to steady demand. Half stay locked for 30 days and the rest for 90 days from allotment 3. This tranche ties to the 30-day window, with the rest of the anchor allocation set to unlock in early March 2026 3.
The stock fell 5% to Rs 173.20 on the expiry 4. Anchor buyers include mutual funds and insurers 4. Banks, financial institutions, and foreign portfolio investors also took part 4.

Post-unlock and broader supply calendar takeaways for institutional investors

Shares trade 32% below the Rs 254 peak. The price still sits about 56% above the IPO level of Rs 111. UBS and Choice Institutional Equities have targets above the market.
Between December 2025 and March 2026, shares worth around Rs 2 lakh crore (about Rs 2 trillion) across 101 companies are set to unlock 2. This can add to market-wide volatility. Meesho’s Red Herring Prospectus (RHP) lists a narrowed loss of Rs 700.7 crore for the first half (H1) of fiscal year 2026 (FY26) (six months ended September 2025) and 29.4% revenue growth to Rs 5,577.5 crore 3.