MobiKwik Shares Hit 20% Upper Circuit After Sinking to 52-Week-Low; What’s Behind The Rebound?

MobiKwik share price today: Financial technology firm, One MobiKwik Systems' share price increased by 20% to hit the upper circuit on Tuesday. MobiKwik share price rally has come a day after the company scrip touched 52-week low mark as its shareholder lock-in period ended on Monday.

MobiKwik stock conveniently crossed its IPO price of Rs 279 per share after it surged over 20% to Rs 298 per share on BSE on Tuesday. The stock closed at Rs 248.35 per share on BSE on Monday, which was significantly lower than its IPO price. MobiKwik share price value has fallen over 306.70% year to date (YTD). The stock touched its 52-week high mark of Rs 698.30 per share on BSE on 26 December 2024.

Why did MobiKwik shares face significant selling pressure on Monday? What led to the rebound?

The company shares faced a sharp decline in value because of the expiration of the three-month lock-in period of anchor investors. According to a Nuvama Alternative and Quantitative Research report, as many as 46 lakh shares of 6% of MobiKwik's outstanding equity became eligible to be traded on Monday after the conclusion of three-month lock-in period.

"The sharp decline is primarily attributed to the expiration of the three-month lock-in period for anchor investors. Before its IPO launch in December 2024, the company had allocated approximately 9.22 million shares (45% of the total offering) to 21 anchor investors. With the lock-in period ending on March 17, nearly 4.6 million shares have become available for trading, contributing to heightened volatility and selling pressure," said Vishnu Kant Upadhyay, AVP - Research & Advisory, Master Capital Services.

Take a Poll

The massive surge in MobiKwik's share price on Tuesday is a part of the stock price volatility after the expiry of the lock-in period.

MobiKwik stock was trading below its IPO price on Monday after heavy selling pressure. "The expiration of anchor investor lock-in periods often results in increased supply in the market, leading to sharp corrections as early investors seek to book profits or rebalance their portfolios," Upadhyay added.

MobiKwik reported a 17.7% YoY rise in its revenue to Rs ₹269.5 crore in the December quarter of financial year 2024-25. Meanwhile, its total income also increased by 18.6% annually to Rs 274.5 crore.

During the December quarter, the company had reported a net loss of Rs 55.3 crore against a profit of Rs 5.3 crore in the same period last year. Its loss widened sequentially from Rs 3.6 crore in the previous quarter.

One MobiKwik IPO listing

The company hit the stock market with a stellar debut on December 18, 2024. MobiKwik shares opened at Rs 442.25 on the BSE, marking a 58.51 per cent premium over the IPO allotment price of Rs 279.

MobiKwik brought its IPO worth Rs 572 crore in an entirely fresh issue. MobiKwik IPO included 2.05 crore equity shares and the funds raised were planned to be utilised to drive growth in financial and payment services, investment in research and development for AI and machine learning and expansion of payment device infrastructure. MobiKwik is operates in a large span of area including payments, customer credit and investment.