MobiKwik shares more than halves from all-time high, trades below listing price

Earlier this month, on January 7, MobiKwik reported a net loss of Rs 3.6 crore for the September quarter

Shares of One MobiKwik Systems, the parent company of payment solutions provider MobiKwik, dropped over 6 percent to Rs 433 per share on January 22 following the release of lackluster Q2FY25 results.

The stock has now lost more than half its value, plummeting over 60 percent from its all-time high of Rs 698 per share. It currently trades below its listing day price. MobiKwik shares had made a stellar debut on December 18, opening at a 57 percent premium of Rs 440 per share on the NSE and later surging to Rs 528 after hitting a 20 percent upper circuit.

The company’s IPO had garnered an overwhelming response, with the Rs 572 crore fresh issue seeing subscriptions exceed 100 times across shareholder categories. The IPO price band was set at Rs 265-Rs 279 per share.

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Earlier this month, on January 7, MobiKwik reported a net loss of Rs 3.6 crore for the September quarter, a sharp reversal from the net profit of Rs 5.3 crore in the same period last year. However, revenue from operations grew 43 percent year-on-year (YoY) to Rs 291 crore in Q2FY25, compared to Rs 203 crore in Q2FY24.

Operationally, the company’s EBITDA fell 37 percent YoY to Rs 6.8 crore, although EBITDA margins improved by 290 basis points to 5.2 percent.

In a bid to enhance its offerings, MobiKwik recently partnered with Piramal Finance to provide personal loans to its users. This collaboration aims to expand access to affordable credit, enabling customers to seamlessly apply for loans directly through the platform. The loans are tailored to address a variety of needs, including education, medical expenses, travel, and other personal requirements, according to the company’s exchange filing.

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