The stock of e-commerce platform Meesho hit lower circuit soon after the start of trading on Monday.
The decline came after the company received a Rs 1,500 crore income tax notice on Friday. The stock, which closed at Rs 159.10 apiece on Friday, opened 7.2 percent lower at Rs 147.60 on Monday.
During the session, the stock could reverse some of the losses, but further selling pressured the scrip to tank to Rs 143.20, its 52-week low and the lower circuit mark.
Trading in the scrip was then stopped. The stock could not gain during the rest of the trading session and closed at Rs 143.20 apiece.
Meesho received an income tax demand notice of Rs 1,500 crore for the assessment year 2023-24 from tax authorities on Friday.
It said that the Income Tax Department had made some additions and adjustments to the income reported by the company.
Meesho, in a statement, said that it was currently evaluating the Assessment Order and will take necessary action in response to the order.
It said that it had adequate legal and factual grounds to contest the observations and adjustments made in the Assessment Order.
“(The company) is taking necessary steps to protect its interest,” it said in the exchange filing.
A similar demand order was issued last year to Meesho for Assessment Year 2022-23. However, the High Court of Karnataka had granted an interim stay on that in April 2025.
Meesho said that the latest demand order did not have any material impact on the company’s financial position or its operations.
The tax demand notice has come soon after the company reported a steep increase in its losses in the December quarter.
Its net loss increased by nearly 12 times year-on-year to Rs 491 crore in Q3, compared with Rs 37.4 crore in the same period last year. However, revenue rose 32 percent to Rs 3,517.6 crore.
At the same time, the scrip has declined 7.83 percent in the past week and 8.66 percent over the month. On a year-to-date basis, it is down 21 percent. The stock had hit a 52-week high of Rs 254.40 on December 18, 2025.
