MobiKwik shares skid 6% as investors book profits after 117% returns in 2 sessions
One MobiKwik Systems fell by as much as 5.7% on Friday to Rs 510.30 on the BSE. This decline came as investors engaged in profit booking after a sharp rally of 37% in the previous two days following the fintech firm’s Dalal Street debut.
MobiKwik, which listed on the stock exchanges on Wednesday at a 58.5% premium over its issue price of Rs 279, saw its shares open at Rs 442.25 on the BSE. The stock had already delivered a 117% return as of Thursday, peaking at an intraday high of Rs 605 before retreating on Friday.
The fintech company’s IPO, valued at Rs 572 crore, was oversubscribed by 119 times, driven by optimism surrounding its profitability and the booming digital payments sector. The funds raised are earmarked for scaling financial and payment services, advancing AI and machine learning, and enhancing payment device infrastructure.
The company’s recent shift to profitability, coupled with the growing adoption of digital payments, boosted market confidence, said Shivani Nyati, Head of Wealth at Swastika Investmart. She added, “However, sustaining this momentum would depend on its ability to maintain profitability and carve out a niche in the competitive fintech sector. Investors are recommended to book profits, given the high listing gains, while those wanting to hold should set a stop loss at around Rs 400.”
Founded in 2008, MobiKwik operates a dual-sided payments platform catering to over 161 million registered users and 4.26 million merchants as of June 2024. The company offers services spanning digital
