Meesho shares experienced profit-taking on Thursday after reaching a new 52-week and all-time high on increased trading volume. The stock’s quick rise pushed the company’s market capitalization beyond the Rs 1 lakh crore mark during the session.
Meesho shares rise to 7.8%, experience market capitalization of 1 lakh crore
On the NSE, Meesho shares climbed as much as 7.98 %, hitting a peak of Rs 233.60 each. The stock opened with a gain of about 4.5 %.
However, the stock later lost some gains amid profit taking, trading at Rs 212.45 per share, down 1.81 %, at 11:35 am. In the previous session, the newly listed shares of Meesho had increase 20 % to hit the upper limit.
Orders will increase from 9.2 times to 14.7 times
UBS set a ‘Buy’ rating on Meesho shares, with a target price of Rs 220 per share. UBS also projects that order frequency will rise from 9.2 times to 14.7 times. However, the average order value may drop from Rs 274 to Rs 233 as logistics improvements are passed on.
The e-commerce platform made a strong debut on December 10, listing at Rs 162.50 per share on the NSE, which was over 46 % higher than the IPO price of Rs 111.
Meesho’s initial public offering, valued at Rs 5,421 crore, was subscribed 79 times. The stock is currently trading around 32 % above its listing price.
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