Meesho shares fall up to 5% as lock-in period ends
What's the story
Shares of Meesho fell by as much as 5% to ₹173 on Wednesday after the expiry of a one-month shareholder lock-in period. The move made some 110 million shares, or nearly 2% of Meesho's outstanding equity, eligible for trading. At today's closing price, these shares would be worth about ₹1,900 crore.
Market reaction
Meesho's share performance post-lock-in expiry
Despite the lock-in expiry, Meesho shares are still trading well above their IPO price. The stock has gained nearly 64% from its issue price of ₹111, but has corrected about 28% from its post-listing high of ₹254. Meesho's three-day public issue, worth over ₹5,000 crore, received strong demand from all categories of investors. The IPO was subscribed 79 times overall with retail portion subscribed more than 19 times and qualified institutional buyers' segment seeing a 120 times subscription.
Business strategy
Meesho's revenue generation and future plans
In a previous interaction with CNBC-TV18, Meesho CEO Vidit Aatrey had revealed that the company generates revenue through services offered to sellers. He said logistics and advertising are key income streams for the firm. Aatrey also stressed on free cash flow as the company's most important metric, noting that Meesho has been free cash flow positive for two years and intends to continue this while scaling its business.