Meesho’s share price fell by approximately 10% on March 9, 2026, following a substantial tax demand from the Income Tax Department.
Meesho Share Price Takes a Hit Following Tax Demand
On March 9, 2026, Meesho’s share price experienced a notable decline of about 10%, closing at ₹132.84 per share. This drop was primarily triggered by a substantial tax demand issued 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 has raised concerns among investors regarding the company’s financial stability. Meesho, a rapidly growing online commerce platform in India, has stated its intention to contest this tax demand legally, arguing that it does not agree with the observations made in the assessment order.
On the day of the decline, Meesho’s stock opened at ₹147.60 per share, reaching an intraday high of ₹150.95 before plummeting to an intraday low of ₹143.20. This volatility reflects the market’s reaction to the unexpected tax claim, which has overshadowed the company’s recent performance since its stock market debut on December 10, 2025.
Meesho’s initial public offering (IPO) was priced within a band of ₹105 to ₹111 per share, and the stock listed at approximately ₹162.5, delivering around 46% in listing gains. However, the recent tax demand has raised questions about the company’s financial practices and future growth potential.
Investors are now left to consider the implications of this tax demand on Meesho’s future. The company’s legal battle against the Income Tax Department could take time, and the outcome remains uncertain. Details remain unconfirmed as the situation develops.
As Meesho continues to contest the tax demand, market analysts will be closely monitoring the company’s performance and any further developments that may arise. The impact of this tax issue on investor confidence and share price stability will be critical in the coming weeks.
