Mobikwik Shares Plummet 15% to New 52-Week Low Following IPO Lock-In Expiry

Shares of One Mobikwik Systems have faced a significant downturn, plummeting nearly 15% to reach a new 52-week low as of March 17. This decline comes on the heels of the expiration of a three-month lock-in period, which has made 5 million equity shares, constituting 6% of the company’s total outstanding shares, available for trading. While the end of this lock-in period allows shares to be traded, it does not necessarily imply that all shares will be sold immediately.

Impact of Lock-in Expiration on Mobikwik Shares

The release of these shares triggered a swift drop in Mobikwik’s stock price. The shares opened at ₹269.95, a decline from the previous close of ₹270.50, but quickly fell to an all-time low of ₹231.05 during intraday trading.

Initial Listing: Mobikwik made an impressive entry into the stock market in December 2024 with shares listed at a 57.71% premium on the NSE and 58.51% on the BSE.
Debut Performance: The stock’s first day of trading concluded with an astonishing 89% premium.

A Dramatic Fall from Grace

Since hitting a peak of ₹698.30 on December 26, 2024, Mobikwik’s stock has seen a staggering 70% decrease, dropping below its IPO price of ₹279. This sharp decline raises questions about the company’s future prospects and investor sentiment.

Mobikwik IPO Highlights

The IPO of One Mobikwik Systems was met with overwhelming enthusiasm from investors, achieving a remarkable overall subscription rate of 119.38 times. The breakdown is as follows:

Retail Investors: Subscribed 134.67 times
Qualified Institutional Buyers (QIBs): Subscribed 119.50 times
Non-Institutional Investors (NIIs): Subscribed 108.95 times

The IPO was available for subscription from December 11 to 13, showcasing strong interest across all investor categories.

Conclusion

As Mobikwik navigates this turbulent period, the market will be watching closely to see how the company adjusts and responds to these challenges. Investors are advised to stay informed about market trends and updates related to Mobikwik, as the fintech landscape continues to evolve.