E-commerce company Meesho shares gained on Tuesday after a large block deal involving more than 104.8 million shares was executed on the exchanges.
The stock rose as much as 2.21% to an intraday high of Rs 195.90 on the BSE. At 10:35 am, it was trading 1.38% higher at Rs 194.30, outperforming the broader market. The BSE Sensex was up 0.04% at 78,669.
Around 104.8 million shares, representing 2.27% of the company's equity, changed hands in two block deals.
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The transactions were executed at an average price of Rs 186 per share, taking the total deal value to about Rs 1,949 crore. The identities of the buyers and sellers were not immediately known.
The block deal comes after Meesho reported a narrower loss for the June quarter.
The e-commerce platform posted a net loss of Rs 132.8 crore, compared with a loss of Rs 289.3 crore a year earlier, while revenue rose 48.3% year-on-year to Rs 3,713 crore.
Loss at the EBITDA level narrowed to Rs 224.7 crore from Rs 264.4 crore in the corresponding quarter last year.
The company also reported a 34% year-on-year increase in Net Merchandise Value (NMV) to Rs 11,614 crore, while marketplace revenue climbed 48% to Rs 3,707 crore.
Contribution margin expanded 54 basis points quarter-on-quarter to 4.6% of NMV, and marketplace adjusted EBITDA improved to -1.2% of NMV.
Moving forward, Meesho said it expects higher user growth and spending in the current quarter but relatively slower NMV growth due to changes in the festive calendar. The company said it is prioritising long-term platform expansion over near-term growth metrics.
Separately, Meesho's board approved an investment of Rs 75 crore in its wholly-owned subsidiary, Meesho Grocery Pvt. Ltd., to support the expansion of its grocery business, strengthen operations and meet regulatory requirements.
The company said the capital infusion will help improve operational efficiency and expand the subsidiary's offerings.
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