Tech IPO Turbulence: Meesho Shares Continue Downward Spiral

Meesho Ltd (NSE: MEES.NS) shares continued their downward slide on December 23, 2025, trading sharply lower in the afternoon session. At 12:10 PM IST, the stock fell around 10% intraday to ₹181.52, extending its cumulative decline to over 22% across three consecutive sessions.

Market Performance

Meesho’s market capitalization slipped below ₹85,000 crore, after briefly crossing the ₹1 trillion mark during its post-IPO rally.

The stock had surged around 55% in four sessions post-listing but has since corrected sharply.

Analyst Concerns

Analysts flagged valuation and profitability risks, noting that the near-term risk-reward profile looks unattractive at elevated levels.

While Meesho’s long-term growth prospects remain strong, experts emphasize execution and profitability as critical factors for sustaining investor confidence.

Broader Context

The sell-off reflects typical volatility in newly listed consumer-tech firms, where initial enthusiasm often gives way to profit-taking.

Market watchers expect continued choppiness until earnings visibility improves.

This downturn highlights the challenges of balancing rapid growth with sustainable profitability in India’s evolving tech IPO landscape.

Sources: TS2 Tech, Moneycontrol