Meesho shares drop 21% after early post-IPO rally
Meesho shares fell sharply for the third consecutive session on December 23, 2025, dropping more than 8% to Rs 185.34. Over the past three sessions, the stock has lost over 21% of its value, erasing some of the gains from its initial post-IPO rally.
The newly-listed e-commerce platform had surged 65% in just four sessions following its December 10 NSE listing at Rs 162.50, which was a 46% premium over its IPO price of Rs 111. The Rs 5,421-crore IPO had been subscribed 79 times, News.Az reports, citing foreign media.
Analysts warn that while Meesho’s long-term growth story is strong, the current price levels make near-term risk-reward unattractive. Abhinav Tiwari, Research Analyst at Bonanza, said that elevated valuations do not fully account for execution risks or the fact that the company is still posting losses.
Harshal Dasani, Business Head at INVasset PMS, noted that the sharp rally has already priced in much of the market optimism. “Investor confidence is currently driven more by perceived long-term potential than near-term earnings,” he added, emphasizing the importance of Meesho proving its public-market credentials through consistent profitability and operational transparency.
Investors are advised to focus on how effectively Meesho converts scale into sustainable profits, which will determine whether the stock maintains its post-IPO valuation or normalizes over time.
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