MobiKwik Shares Drop 6% To Hit Fresh All-Time Low

SUMMARY

The stock was last down 1.4% at INR 307 per share on the BSE, as of 11:38 AM, compared to its previous close of INR 311.20 apiece on Friday

The fintech major acquired an additional 3.39% stake in Blostem for INR 1.5 Cr, MobiKwik said in an exchange filing on Friday

To note, the company’s shares hit its all-time low at INR 314 apiece on February 17

Shares of MobiKwik dropped 5.6% to mark its fresh all-time low of INR 293.60 apiece on the BSE intraday trading session today (February 24), days after acquiring an additional stake in Blostem Fintech Private Limited.

The stock was last down 1.4% at INR 307 per share on the BSE, as of 11:38 AM, compared to its previous close of INR 311.20 apiece on Friday (February 21).

The company’s market capitalisation currently stands at INR 2,373.71 Cr.

The fintech major acquired an additional 3.39% stake in Blostem for INR 1.5 Cr, MobiKwik said in an exchange filing on Friday.

To note, the company’s shares hit its all-time low at INR 314 apiece on February 17.

Earlier this month, as part of plans to expand its business, the fintech company received approval from its board to incorporate and invest in one or more wholly-owned subsidiaries.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants.

MobiKwik made its market debut on December 18, with the stock listing at INR 442.25 on the BSE, a 58.5% premium against the IPO issue price of INR 279. Furthermore, on the NSE, its shares were listed at INR 440 apiece, a 57.7% premium against the issue price.

Since its public listing on the bourses, the company has lost 41.3% in value, as of its last close. Meanwhile, MobiKwik closed the last five out of seven sessions in red.

As of 2:29 PM, Sensex was down 1.16% at 74,440.45, while Nifty 50 1.10% at 22,544.40, today.

To note, the broader market’s downfall has played a strong influence on the direction of numerous new-age tech stocks in the past weeks, driving multiple companies to hit their fresh all-time lows.

Sensex ended the previous week 0.83% lower at 75,311.06 and Nifty 50 fell 0.58% to 22,795.90. The major driver for this bearish sentiment was the unabated selling spree of foreign institutional investors (FIIs).

As per Inc42’s weekly stock update, apart from MobiKwik, shares of Yatra, DroneAcharya, IndiaMART, Unicommerce, FirstCry, Tracxn and Yudiz touched fresh lows in the past week.