Why Did MobiKwik's Share Price Plunge Below Its IPO Price?
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Synopsis
MobiKwik's share price has sharply decreased, dipping over 9% below its IPO price after the end of the lock-in period for pre-IPO shareholders. Despite a loss, the company showcases robust growth in its payments sector, with a remarkable GMV increase of 203% YoY. Explore the factors behind this significant market movement.
Key Takeaways
- MobiKwik's share price fell over 9% below its IPO price.
- Net loss widened to Rs 56 crore in Q4 FY25.
- Revenue grew 33.7% to Rs 1,170.1 crore despite losses.
- GMV surged 203% YoY to Rs 1,15,900 crore.
- MobiKwik added 20.6 million new users in FY25.
Mumbai, June 18 (NationPress) The shares of One MobiKwik Systems Limited, the parent company behind the digital payments platform MobiKwik, experienced a significant decline on Wednesday, plummeting by over 9 percent and trading below its initial public offering (IPO) price, following the conclusion of the mandatory six-month lock-in period for pre-IPO investors.
The stock fell by 9.34 percent, or Rs 25.15, wrapping up the trading day at Rs 244.25 on the National Stock Exchange (NSE). MobiKwik had initially made a remarkable market entry late last year, listing at a 58 percent premium over its issue price of Rs 279.
However, the share price has since suffered a dramatic drop, erasing nearly 64 percent of its value from its post-listing peak of Rs 698.
In the March quarter (Q4) of FY25, MobiKwik reported a net loss that widened to Rs 56 crore, compared to a mere Rs 0.6 crore loss during the same quarter of the previous fiscal year (Q4 FY24).
On a quarter-on-quarter (QoQ) basis, revenue from operations saw a slight decrease to Rs 267.7 crore from Rs 269.4 crore.
The company also registered an EBITDA loss of Rs 56.5 crore, which exceeded the Rs 47.6 crore loss reported in the prior quarter.
Despite these financial setbacks, MobiKwik emphasized strong growth in its payments sector, with Gross Merchandise Value (GMV) soaring by 203 percent year-on-year (YoY) to Rs 1,15,900 crore.
For the complete fiscal year 2024-25, MobiKwik recorded an overall loss of Rs 121.5 crore, a reversal from a profit of Rs 14 crore in FY24.
Nonetheless, revenue surged by 33.7 percent to Rs 1,170.1 crore, attributed to robust growth in its payments segment.
By the conclusion of FY25, MobiKwik had amassed 176.4 million users, with 20.6 million new users joining during the year.
MobiKwik provides a diverse range of digital payment options, including the MobiKwik Wallet, UPI, Pocket UPI, and Zaakpay, its payment gateway platform.
Point of View
I see MobiKwik's current challenges as part of a larger narrative in the digital payments industry. While the stock's decline is concerning, the strong growth in its payments segment signals potential for recovery. It is essential for stakeholders to closely monitor these developments.
NationPress
18/06/2025
Frequently Asked Questions
What caused MobiKwik's share price drop?
The decline was primarily due to the end of the lock-in period for pre-IPO shareholders, leading to increased selling pressure.
How much did MobiKwik's stock fall?
MobiKwik's stock fell by over 9%, closing at Rs 244.25 on the NSE.
What is the company's financial outlook?
Despite losses, MobiKwik reported significant growth in its payments business, with a GMV increase of 203% YoY.
How many users does MobiKwik have?
As of FY25, MobiKwik had approximately 176.4 million users, with 20.6 million being new additions during the year.
What services does MobiKwik offer?
MobiKwik provides various digital payment services, including the MobiKwik Wallet, UPI, Pocket UPI, and Zaakpay.
