Jefferies Bullish Call and Block Deal Help Meesho Share Price Bounce Back

The stock of a major e-commerce company recently witnessed sharp market volatility as several factors converged in a single day. From a large number of shares available for trading to strong institutional interest, the stock experienced both pressure and recovery in a short period of time.

Meesho shares came under pressure in the early hours of trading after a significant lock-in period ended. Approximately 308.3 crore shares, representing approximately 68% of the company’s outstanding equity, became available for trading on June 10. Based on the previous closing price, these shares were valued at approximately ₹51,800 crore.

This does not mean that all of these shares will be sold immediately, but it gives investors the option to sell when they book profits. Due to this sudden increase in available supply, the stock slipped approximately 1.14% and reached an intraday low of ₹165.05 during the early trading hours.

Despite the initial decline, the stock soon found support as strong buying interest emerged in the market. A large block deal worth approximately ₹1,540 crore played a key role in stabilizing the price. Reports indicate that approximately 93 million shares, representing approximately 2 percent of the equity, were traded in this deal, although the identities of the buyers and sellers are still not publicly known.

This activity helped the stock recover quickly and pushed it higher during the day. At one point, it rose 4.61 percent to ₹174.65. Later, it settled at ₹169.40 on the BSE, up approximately 1.47 percent, demonstrating strength despite initial selling pressure.

Another key factor supporting the stock is the positive outlook from global brokerage firm Jefferies. The firm has initiated coverage on Meesho with a “buy” rating and a target price of ₹225, suggesting significant upside from current levels.

According to the brokerage, Meesho is building a strong “value commerce” model focused on affordable pricing, efficient logistics, and easy product discovery. Its deep connections with MSME suppliers have helped it build a loyal customer base, which is expected to drive long-term growth.

Jefferies estimates that by fiscal year 2030, the company could achieve a compound annual growth rate of approximately 25 percent in net merchandise value. It also expects an adjusted EBITDA margin of approximately 3 percent, supported by a business model that requires relatively low capital due to negative working capital and a strong cash position.

Meesho stock has seen considerable volatility since its launch. During its ₹5,421 crore IPO, shares were issued at ₹111. After listing at a premium of over 45% in December 2025, the stock quickly gained momentum, reaching a record high of ₹254.65 on December 18, 2025.

However, this momentum did not last, and within three months, the stock declined sharply. It fell 50.64% from its peak and reached a lowest level of ₹125.70 on March 16, 2026, after listing. This volatility shows how quickly market sentiment can change, especially in high-growth tech-driven companies.