Meesho Stock Plunges 40%, Hits Lower Circuit Again: IPO Investors Trapped

• Meesho's share price opened at a 5% lower circuit on February 2, 2026, continuing its downward trend.
• The stock has fallen approximately 40% from its peak of Rs 254.40 within months of its listing, trapping IPO investors.
• Key reasons for the decline include the expiration of the 1-month lock-in period for pre-IPO and anchor investors on January 6, 2026, leading to heavy selling.
• The resignation of GM-Business Megha Agarwal on January 7, 2026, and weak Q3 results showing a 13x increase in net loss to Rs 491 crore further eroded investor confidence.
• Low promoter (16.76%), FII (4.31%), and DII (5.28%) holdings contribute to intense selling pressure and lack of stability in the share price.

Why It Matters: Meesho's stock is in freefall due to lock-in expiry, management exits, and poor results, trapping IPO investors.