Meesho Share Price Experiences Significant Drop
On March 9, 2026, Meesho’s share price fell by approximately 10%, a decline that has raised concerns among investors. This drop comes in the wake of a substantial tax demand issued to the company by the Income Tax Department, amounting to ₹1,499.73 crore for the assessment year 2023–24.
The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which allows the department to assess and demand taxes based on the company’s financial activities. In response to this demand, Meesho has announced its intention to contest the tax claim legally, indicating that the company disagrees with the observations and adjustments made in the assessment order.
On the day of the share price drop, Meesho’s stock opened at ₹147.60, reached an intraday high of ₹150.95, and an intraday low of ₹143.20. This volatility reflects the market’s reaction to the news surrounding the tax demand. The company had previously faced a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore.
Meesho’s initial public offering (IPO) was priced within a band of ₹105 – ₹111 per share, and the company made its stock market debut on December 10, 2025, with a listing price of around ₹162.5. This initial performance resulted in a listing gain of about 46%, showcasing strong investor interest prior to the recent tax issues.
The current tax demand includes interest, further complicating Meesho’s financial position. The company has stated, “The company does not agree with the observations and adjustments made in the assessment order and believes it has adequate legal and factual grounds to contest the matter.” This statement underscores Meesho’s commitment to challenging the tax demand, which could have significant implications for its financial health and share price moving forward.
Tax disputes involving large e-commerce marketplaces like Meesho often arise due to the complex nature of accounting for operational costs. As the company navigates this legal challenge, investors will be closely monitoring its developments and the potential impact on its market performance.
Details remain unconfirmed regarding the timeline for the legal proceedings or any potential resolutions. As Meesho prepares to contest the tax demand, the uncertainty surrounding the outcome may continue to influence its share price in the near future.
