India Online Retailer Meesho Plunges 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.

Meesho is taking necessary steps to protect ...