JM Financial has assigned a ‘Reduce’ rating to Meesho, citing limited upside after its IPO surge. The e-commerce platform, which debuted in December 2025, saw strong initial gains but has since corrected nearly 32% from peak levels. Analysts highlight valuation concerns and near-term risks despite Meesho’s long-term growth potential.
Meesho’s Market Reality Post IPO
Meesho, India’s value-commerce unicorn, is facing tempered investor sentiment as JM Financial issued a ‘Reduce’ rating, signaling caution after its blockbuster IPO run-up. The company, which listed on December 10, 2025, had initially surged over 57% from its listing price but has since witnessed profit-taking and volatility.
Key Highlights:
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IPO Performance: Priced at ₹111 per share, Meesho listed at ₹161.20 and hit a high of ₹254.65 by December 18, 2025.
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Correction: Shares have dropped nearly 32% from peak levels, currently trading around ₹173.20.
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Lock-in Expiry Impact: On January 7, 2026, nearly 10.99 crore shares (2% of equity) became eligible for trading, adding supply-side pressure.
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Analyst View: JM Financial’s ‘Reduce’ rating reflects concerns over stretched valuations and limited near-term upside.
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Growth Story: Despite risks, Meesho’s focus on small-town shoppers, tech-driven scale, and value commerce positioning remain long-term positives.
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Investor Sentiment: Market watchers expect consolidation before any fresh rally, with profitability and execution being key drivers.
Meesho’s journey underscores the challenges of sustaining IPO momentum, with analysts urging caution while acknowledging its disruptive potential in India’s e-commerce landscape.
Sources: JM Financial Services, Moneycontrol, Economic Times