Meesho Share Price Takes a Hit Following Tax Demand
On March 9, 2026, Meesho’s share price fell approximately 10%, a significant decline that has raised concerns among investors. The drop was triggered by the company receiving a tax demand of ₹1,499.73 crore for the assessment year 2023–24 from the Income Tax Department. This unexpected financial burden has led to a swift reaction in the stock market, impacting investor sentiment.
The tax demand was issued under Section 143(3) and Section 156 of the Income Tax Act, which allows the tax authorities to assess and demand payment for taxes owed. Meesho has announced plans to contest this tax demand legally, indicating that the company does not agree with the observations made in the assessment order. This legal battle could further complicate the company’s financial landscape.
On the day of the announcement, Meesho’s shares opened at ₹147.60 per share, with an intraday high of ₹150.95 and a low of ₹143.20. The fluctuation in share price reflects the volatility that often accompanies significant corporate news. Investors are likely to be closely monitoring the situation as it develops, particularly in light of the company’s previous tax issues.
Prior to this incident, Meesho had received a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore. This history of tax scrutiny may contribute to the current investor apprehension regarding the company’s financial stability and future growth prospects.
Meesho, known as one of India’s fast-growing online commerce platforms, connects suppliers, resellers, and customers through its digital marketplace. The company made its stock market debut on December 10, 2025, with a listing price of around ₹162.5, delivering about 46% listing gains. However, the recent developments have overshadowed these initial successes, leading to questions about the company’s trajectory.
The IPO price band for Meesho was set between ₹105 and ₹111 per share, and the initial market response was positive. However, the current tax demand and the associated legal challenges could hinder the company’s ability to maintain investor confidence and achieve sustained growth in the competitive e-commerce sector.
As the situation unfolds, investors are left to ponder the implications of this tax demand and the potential impact on Meesho’s share price. Details remain unconfirmed, and further developments are expected as the company navigates this challenging period.
