Synopsis: Shares of Meesho Limited (NSE: MEESHO) plummeted 10% to hit an intraday low of ₹143.20 on Monday, March 9, 2026. This sharp decline, which locked the stock at its lower circuit, was triggered by a massive ₹1,499.73 crore income tax demand and the expiry of a critical anchor lock-in period.

Meesho Share Price Crash: Stock Hits 10% Lower Circuit on Tax Demand

The Bengaluru-based e-retailer faced a “double whammy” during Monday’s trading session.

While the broader market was already under pressure due to global oil shocks, Meesho‘s specific regulatory and liquidity hurdles sent the stock to its lowest level since its December 2025 listing.

The ₹1,500 Crore Tax Blow

The primary catalyst for the sell-off was a regulatory filing from March 7, detailing a substantial tax demand for the Assessment Year 2023-24.

• Scrutiny Assessment: The demand follows an assessment order issued under Section 143(3) of the Income Tax Act.
• The Dispute: While specifics are pending, such demands in e-commerce often relate to the classification of marketing incentives and customer discounts as capital expenditure rather than deductible business expenses.
• Legal Recourse: Meesho has stated it “does not concur” with the observations and will contest the order. Notably, a similar ₹572 crore demand for AY 2022-23 is currently stayed by the Karnataka High Court.

Lock-in Expiry Adds to Supply Pressure

Compounding the negative sentiment was the end of the three-month anchor lock-in period today.

• Shares Unlocked: Approximately 109.9 million shares (roughly 2% of the company’s equity) became eligible for trading this morning.
• Institutional Exit: The market reacted to fears that early institutional backers might offload their holdings to mitigate risks following the tax news, leading to a surge in selling volume.

Also Read: DCX Systems Stock Surges 14% After Securing ₹68 Crore Order from HAL

Market Data: Intraday Snapshot (March 9, 2026)

The stock opened at ₹147.60 and quickly spiraled to its lower limit as panic selling intensified.

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