Strong sell-off in Meesho, shares fall 10%; Big shock for two reasons

Strong sell-off in Meesho, shares fall 10%; Big shock for two reasons

Shares of e-commerce marketplace Meesho saw a 10 per cent decline on March 9. On the BSE, the price went down to a low of Rs 143.20 and the lower circuit was set. This is a record low for the stock. There are two important reasons for selling pressure. First, the company received an income tax demand notice of about Rs 1,500 crore for the assessment year 2023-24. Second, 2 per cent of equities will be free to trade at the end of the lock-in period. First, let's talk about the Income Tax Demand Notice. The company has said in an exchange filing that the demand notice has been issued by the Assessment Unit of the Income Tax Department under Section 156 of the Income Tax Act. Also, an assessment order has been issued to the company under Section 143 (3) of the Income Tax Act. According to Meesho, the Income Tax Department has demanded income tax of Rs 14,99,73,82,840 or about Rs 1500 crore from him. It also includes interest. The company has said that it does not agree with the observations and adjustments made in the assessment order and is planning to challenge the demand. The company believes that it has sufficient reasons to justify its point on the basis of law and facts. It is taking necessary steps to protect its interests. The company also said that this order will not have any major adverse impact on its financial condition, operations or other activities. All this is for information. This is not a buy/sell recommendation. Thank you, Technofunda24