Meesho Share Price Takes a Hit Amid Tax Demand
On March 9, 2026, Meesho’s share price experienced a notable decline, falling approximately 10% in response to a significant tax demand issued by the Income Tax Department. The company’s stock opened at ₹147.60 per share, reached an intraday high of ₹150.95, but ultimately closed at an intraday low of ₹143.20.
The tax demand, amounting to ₹1,499.73 crore for the assessment year 2023–24, was issued under Section 143(3) and Section 156 of the Income Tax Act. This development marks a critical moment for Meesho, which has been under regulatory scrutiny due to previous tax notices. In fact, the company had received a tax notice related to the fiscal year 2022, which resulted in a claim of ₹572 crore.
Meesho’s management has indicated plans to contest the recent tax demand legally, signaling a potential protracted legal battle. The company, which made its stock market debut on December 10, 2025, had an IPO price band of ₹105 to ₹111 per share, and its listing price was around ₹162.5, reflecting a robust 46% gain on its first day of trading.
The sharp decline in Meesho’s share price following the tax demand raises concerns among investors about the company’s financial stability and regulatory challenges. The market’s reaction underscores the sensitivity of stock prices to legal and financial uncertainties, particularly in the context of tax disputes.
As Meesho navigates this challenging situation, the outcome of its legal contest against the tax demand remains uncertain. Investors and market analysts will be closely monitoring the developments, as the company’s ability to manage its tax liabilities could significantly impact its stock performance in the coming months.
Details remain unconfirmed regarding the potential implications of this tax demand on Meesho’s overall business strategy and financial health. The company’s previous experiences with tax notices suggest that this may not be the last regulatory challenge it faces.
In summary, the recent drop in Meesho’s share price serves as a reminder of the volatility inherent in the stock market, particularly for companies under scrutiny by government agencies. As the situation unfolds, stakeholders will be keen to see how Meesho responds to these challenges and what measures it will take to reassure investors and stabilize its share price.
