Meesho Shares Plunge 5% on Anchor Lock-in Expiry; Experts Warn of Overvaluation

• Meesho shares hit a 5% lower circuit today, falling 32% from their peak of ₹254 on December 18.
• The sharp decline is attributed to the expiry of the anchor investor lock-in period for 2% of shares, unlocking approximately 11 crore shares worth ₹2,000 crore.
• Meesho had a bumper market debut on December 10, listing at ₹162.50, a 46% premium over its ₹111 IPO price, with the IPO subscribed 82 times.
• Experts like Abhinav Tiwari and Harshal Dasani view Meesho as a long-term bet but caution against its current expensive valuation and lack of short-term attractiveness.
• Analysts emphasize the need for Meesho to demonstrate solid progress in unit economics and sustainable profitability to justify its post-IPO re-rating.

Why It Matters: Meesho's stock fell due to anchor lock-in expiry; experts advise caution on high valuation despite long-term potential.