Lower Circuit Stock: This stock again hit lower circuit today after the lock-in period ended, down 35% from its peak.

News Topical, Digital Desk : Lower Circuit Stock: Shares of e-commerce company Meesho Limited continued their downward trend for the third consecutive trading session on Thursday, January 8th. The stock fell nearly 5% during today's trading, pushing it into the lower circuit zone. This decline occurred a day after the company's one-month shareholder lock-in period ended.

After the lock-in period ended, approximately 109.9 million shares, representing approximately 2% of the company's total equity, became eligible for trading. However, this does not mean that all of these shares will be immediately sold in the market, but only that they can now be traded in the open market. Meanwhile, Meesho has also announced a significant management role change. According to the company, Milan Partani, who previously held the position of General Manager (User Growth and Content Commerce) and Senior Management Personnel, will now assume the role of General Manager – Commerce Platforms. He will remain part of the senior management team. Despite the recent correction, Meesho shares are still trading approximately 48% above their IPO price of ₹111. However, the stock has fallen approximately 35% from its listing high of ₹254. The SoftBank-backed e-commerce platform had a strong debut on the stock market on December 10th. The shares listed at a premium to the issue price and closed with a gain of 53% on the first day. Meesho's IPO of over ₹5,000 crore received strong demand from investors. The issue was subscribed 79 times overall. Business Model and Focus Earlier, in an interview with CNBC-TV18, Meesho Chairman, Managing Director, and CEO Vidit Aatrey stated that the company's primary source of revenue is services provided to sellers, with logistics and advertising being the most significant. He also stated that free cash flow is Meesho's most important metric. The company has been free cash flow positive for the past two years and aims to maintain this despite expansion. Overall, the expiry of the lock-in period and the sharp decline in the stock have raised investor concerns, while the market appears to be seeking a balance between the company's strong fundamentals and its high post-IPO valuation.

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