Mumbai, Dec 23 (IANS) Shares of Meesho Limited continued to slide for the third straight day on Tuesday, as selling pressure remained strong in the newly listed stock.

The shares fell as much as 8.75 per cent during the day, extending the losses seen over the past two sessions.

On Monday, the stock had ended at the 10 per cent lower circuit, after falling 5 per cent last Friday.

With the latest decline, Meesho’s shares are now down nearly 24 per cent from their post-listing high of Rs 254.

Heavy trading activity was also seen in the stock. By around noon, Meesho had already traded almost the same number of shares as on Monday.

Nearly 7 crore shares, worth over Rs 1,300 crore, had changed hands -- indicating strong investor participation despite the fall.

Market experts believe the recent drop may be due to profit booking by investors after the sharp rally seen soon after listing.

Meesho’s shares had more than doubled from their IPO price of Rs 111 within just over a week, prompting some investors to lock in gains.

The fall in the share price has also impacted the company’s valuation. Meesho’s market capitalisation, which had crossed Rs 1 lakh crore during the post-listing surge, has now declined to around Rs 84,000 crore.

Meesho’s IPO had received a strong response from investors. The three-day issue, worth over Rs 5,000 crore, was subscribed 79 times overall.

The retail portion was subscribed more than 19 times, while qualified institutional buyers subscribed 120 times of their allotted quota.

As of the latest trade on Tuesday, Meesho’s shares were down 8.75 per cent or Rs 17.64 at Rs 184.04.

Despite the recent correction, the stock is still trading about 68 per cent higher than its issue price, keeping early investors in solid gains.

--IANS

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