Bearish Risk: Meesho Shares Sink, Lock-in Expiry Looms for Early

Meesho's shares have fallen for eight consecutive sessions, losing 16.6% of their value, with a 5% drop today alone. This sustained decline is attributed to general market sentiment and the anticipation of a lock-in expiry on June 9th, which could flood the market with additional shares from early investors.

This situation is significant for the Indian market as it underscores the volatility and potential downside risks associated with recent IPOs, particularly those with substantial pre-listing investor bases. The impending lock-in expiry often acts as a major catalyst for price discovery post-listing, and in this case, it's signaling potential further downward pressure.

While Meesho is not listed on NSE/BSE, its performance can influence sentiment towards other Indian e-commerce and tech startups considering IPOs. A poor showing post-listing, especially due to lock-in expiries, might make investors more cautious about similar upcoming listings. Investors in other recently listed tech companies should monitor their own lock-in expiry dates.

Traders should closely monitor Meesho's share price leading up to and immediately after June 9th to gauge the actual selling pressure from early investors. The volume traded around this date will be a key indicator. Also, observe how this event impacts the broader sentiment towards other unlisted Indian tech startups and their valuation expectations.

• •Meesho's shares have sunk for the eighth consecutive session.
• •The stock dropped 5% today to ₹166.60.
• •It has wiped out 16.6% of its value.
• •Lock-in expiry on June 9th may lead to significant selling pressure from early investors.
• •Risk flag: Further selling pressure post-lock-in expiry.