MobiKwik shares fall further from IPO price after a 13% drop; Here’s why

Shares of One MobiKwik Systems Ltd., parent company of payment solutions provider MobiKwik, fell as much as 13% on Monday, March 17, after its shareholder lock-in ended.As many as 46 lakh shares or 6% of MobiKwik’s outstanding equity became eligible to be traded on Monday after its three-month shareholder lock-in period came to an end, according to data from Nuvama Alternative and Quantitative Research.

With this fall, MobiKwik’s

shares have slipped further below their IPO price of ₹279 per share. The stock fell below that level in the week gone by.
For the December quarter, MobiKwik’s revenue increased by 17.7% from last year to ₹269.5 crore, while its total income also increased by 18.6% year-on-year to ₹274.5 crore.MobiKwik reported a net loss of ₹55.3 crore during the quarter, compared to a ₹5.3 crore profit last year and a loss of ₹3.6 crore in the previous quarter.

MobiKwik is tracked only by one analyst, Dolat Capital Markets, who has a “buy” rating on the stock with a price target of ₹700 per share.

Shares of One MobiKwik are trading 7% lower, having recovered from the day’s low at ₹251.85. The stock is down 65% from its post-listing high of ₹698.

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