India E-Commerce Firm Meesho’s Shares Plunge on $163 Million Tax Demand

Shares of SoftBank Group Corp.-backed Indian e-retailer Meesho Ltd. dropped by the daily limit after the platform said it received a $163 million income tax demand.

The Bengaluru-based firm’s shares dropped 10% in Mumbai Monday, outpacing the losses in benchmark index NSE Nifty 50. The e-commerce platform received a demand from India’s Income Tax Department for 15 billion rupees ($163 million), it said in a filing to the exchanges after market hours on Friday. The company disagrees with the tax assessment, and has “adequate legal and factual grounds to contest,” it said.