MobiKwik's Parent Company Sees Stock Plummet Amid Lock-in Period Expiration

MobiKwik's Stock Takes a Hit

Shares of One MobiKwik Systems, the parent company of digital payments provider MobiKwik, fell by as much as 14.6% on Monday. This decrease came after a three-month lock-in period ended, making 46 lakh shares eligible for trade.

Stock Performance

The stock has experienced a significant decline, falling 61% from its post-listing high of nearly Rs 700. It has also dipped below its IPO price of Rs 269, adding to investor concerns. Over the last week, the shares have fallen by 13%, and in the past month, the drop has widened to 24%.

In the past three months, the stock has seen an 11% decrease. Technical indicators suggest continued downward pressure, with the stock trading below all five key simple moving averages (SMAs), including the 50-day SMA.

Company Performance

For the third quarter ending December 2024, One MobiKwik reported a consolidated net loss of Rs 55.28 crore, compared to a profit of Rs 5.27 crore a year earlier. However, revenue for the quarter rose 17.7%, reaching Rs 269.47 crore, up from Rs 228.93 crore in the same period last year.

This marks a stark contrast to the company's performance in the second quarter of FY25, when it posted a smaller net loss of Rs 3.59 crore, even as its total income grew 42% year-on-year, reaching Rs 293.66 crore.

Initial Public Offering (IPO)

MobiKwik's shares made an impressive debut on December 18, 2024, with a 58.51% premium over the IPO price of Rs 279, listing at Rs 442.25 on the Bombay Stock Exchange (BSE). On the National Stock Exchange (NSE), the shares were priced at Rs 440, reflecting a 57.7% premium.

Investors are closely watching the stock's performance, especially with the lock-in period expiration and the company's financial reports. The digital payments market is highly competitive, and MobiKwik faces challenges from other players in the industry.

As the stock market continues to evolve, it's essential to stay informed about the latest trends and developments. Financial news and market analysis can help investors make informed decisions and stay ahead of the curve.