MobiKwik Shares Slide 5.1% Intraday

Shares of fintech major MobiKwik slumped 5.1% to INR 398 intraday on the BSE today (February 3).

The stock shed some loss afterwards to trade 3.96% lower at INR 402.80 at 12:15 PM.

At the above-mentioned time, the company’s market capitalisation stood at INR 3,127.26 Cr while 2.4 Lakh shares were traded by then. 

This comes days after MobiKwik launched a full-scale Central Bank Digital Currency (CBDC) wallet and e-rupee (e₹), in collaboration with the Reserve Bank of India (RBI) and Yes Bank.

MobikWik’s fintech counterparts like Paytm and PB Fintech were trading 4% above and 1.9% below on the BSE at the above time. 

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.

While the stock has given a return of 3% in the last 5 days at the current market price, it has underperformed in the last month with a negative return of 23.96% to its investors. 

At its last closing price, the stock is 5.16% below the listing price of INR 442.25. 

The stock’s decline coincides with the Sensex and Nifty 50 continued trading in the red after opening nearly 1% down in the early trade today. 

The reason attributed to the broader slump in benchmark indices was US President Donald Trump’s announcement of new tariffs on Canada, Mexico, and China on February 1, raising concerns about a global trade war. 

Alongside this, investors are focused on the RBI’s monetary policy announcement on February 7, especially now that the Budget 2025 is over. The RBI is expected to reduce the repo rate from 6.5% to 6.25% to stimulate growth as India’s GDP growth slowed to 5.4% in Q2 FY25 from 8.2% in the last fiscal year. 

However, the broader market performed better than the main indices, with both the BSE Midcap and BSE Smallcap indices losing over 1% each. 

On the financial front, the fintech major reported a net loss of INR 3.59 Cr in Q2 FY25 as against a profit of INR 5.22 Cr in the year-ago quarter. The company attributed the loss to continued investments in the business 

On a quarter-on-quarter basis, MobiKwik’s net loss nearly halved from INR 6.62 Cr.

Revenue from operations surged 42% to INR 290.65 Cr during the quarter under review from INR 203.45 Cr in Q2 FY24. However, it declined 15% sequentially from INR 342.27 Cr.