Shares of One MobiKwik Systems dropped by 5.7% on Friday, closing at Rs 510.30 on the BSE. This drop happened as investors took profits after the stock jumped 37% in just two days following its debut on Dalal Street. MobiKwik listed on the stock exchange on Wednesday at a price that was 58.5% higher than its initial price of Rs 279. The stock started at Rs 442.25 and had impressive gains, reaching a peak of Rs 605 before falling back down on Friday.
The company’s initial public offering (IPO) was valued at Rs 572 crore and was oversubscribed by 119 times, showing strong interest from investors. People were excited about MobiKwik’s move towards profitability and the increasing popularity of digital payments. The money raised will be used to improve their financial services, boost AI and machine learning, and enhance their payment systems.
Shivani Nyati, who is the Head of Wealth at Swastika Investmart, shared that MobiKwik’s ability to stay profitable and stand out in the competitive fintech market will determine if they can keep growing. She advised investors to consider taking profits now, but for those who want to stay invested, it’s smart to set a stop loss at around Rs 400.
Founded back in 2008, MobiKwik serves over 161 million registered users and 4.26 million merchants as of June 2024. They offer a variety of services like digital payments, credit, and investment products. The company is the largest player in India’s PPI wallet sector, holding 23.11% of the market.
Notable investors like Bajaj Finance, Abu Dhabi Investment Authority (ADIA), and American Express have stakes in the company, owning 13.44%, 2.8%, and 1.76% respectively.
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