Meesho shares dive 10% on Rs 1,500 crore income tax demand

Shares of recently listed Meesho Ltd fell sharply in Monday's trade, declining 10 per cent to hit a low of Rs 143.20. The company's initial public offering (IPO), which was open between December 3 and December 5, was priced in the range of Rs 105–111 per equity share.

The fall comes after the e-commerce marketplace disclosed that it has received an income tax (I-T) demand of around Rs 1,500 crore for the assessment year 2023–24 (FY24).

The demand was raised through an assessment order issued under Section 143(3) of the Income Tax Act, along with a demand notice under Section 156, the company said in a regulatory filing dated March 6.

According to the disclosure, the tax department has raised a demand of Rs 14,99,73,82,840, including applicable interest.

Meesho said it does not agree with the observations and adjustments mentioned in the assessment order and intends to challenge the demand.

"The company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest," it said in the exchange filing.

The company also stated that the order is not expected to have any significant adverse impact on its financial position, operations or other activities.

On the earnings front, Meesho's net loss widened nearly 12-fold year-on-year (YoY) to Rs 491 crore in Q3 FY26 from Rs 37.4 crore in the same period last year, even as revenue rose 32 per cent to Rs 3,517.6 crore.

Founded in 2015, Meesho operates a marketplace focused on value commerce and small sellers, catering largely to consumers in Tier-II and smaller cities.