On March 9, 2026, Meesho’s stock fell 10% when the company revealed that it owed Rs 1,500 crore in income tax and that a significant shareholder’s lock-in period was coming to an end. The Bengaluru-based platform aims to fight the tax order while dealing with more pressure to sell.
Tax Demand Details
Meesho was served an assessment order under Section 143(3) of the Income-tax Act for AY 2023-24 on March 6, raising a demand of Rs 1,499.73 crore including interest. The additions by the Income Tax Department are on account of alleged under-reporting of income, which has been a common issue for e-commerce firms. Meesho said it disagrees with the changes and has solid legal grounds to contest.
Share Price Impact
Meesho shares fell 10% on the circuit, trading at Rs 143.8 per, down 44% from their post-IPO high of Rs 254. The stock, which was offered for Rs 111, is still 22.6% higher than its IPO price, even though it fell. This is the third session in a row that the market has gone down, and there are other factors at play.
Lock-in Expiry Pressure
On March 9, 109.9 million shares (2% of equity) worth Rs 1,857 crore at Friday’s close became available for trade. Not everyone will sell, but the expiration creates liquidity overhang, which makes things more volatile after tax news.
Company Context
Meesho focuses on resellers in tier-2 and tier-3 cities. In the third quarter of FY26, sales grew, but the net loss grew to Rs 490.6 crore because of costs. The SoftBank-backed company is in the middle of its second big tax fight in two years.