Mobikwik Stock Surges 20% After Recent Slump: Key Updates and Market Trends

Mobikwik’s stock surged 20% on March 18, closing at ₹298 after hitting a 52-week low of ₹231 the previous day. The stock was locked in the upper circuit due to heavy trading volumes, nearly six times the 10-day average. This recovery came after a five-day losing streak, during which the stock fell 15% following the expiry of its three-month lock-in period, which unlocked 5 million shares (6% of equity) worth approximately $16 million. Mobikwik had listed on the NSE in December at ₹440 per share, a 58% premium over its IPO price of ₹279.

Despite the recent gains, the stock remains 32% below its listing price but is now 7% above its IPO price. It has lost more than half its value since reaching an all-time high of ₹698 in December. Analysts believe the decline was driven by both technical and fundamental factors, including the lock-in expiry, leadership changes, and regulatory restrictions affecting its credit business. On March 19, the stock continued its rally, rising 19.99% to ₹298 after closing at ₹248.35 in the previous session. It fluctuated between ₹248.85 and ₹298 during the day, with a market capitalization of ₹2,317.56 crore. Given its volatility, investors should closely monitor the stock’s movement in the coming days.

Mobikwik Stock Surges 20% After Recent Slump: Key Updates and Market Trends

Mobikwik’s stock price made a strong comeback on March 18, surging 20% after hitting a 52-week low of ₹231 per share the previous day. The stock reached its upper circuit limit of ₹298 due to heavy trading activity, with volumes nearly six times higher than the 10-day average. This rebound followed a challenging five-day period during which the stock dropped 15%. The decline was primarily due to the expiration of a three-month lock-in period, which made 5 million shares (about 6% of the company’s equity) available for trading. These shares were valued at approximately $16 million.

Mobikwik launched its initial public offering (IPO) in December, listing on the National Stock Exchange (NSE) at ₹440 per share—58% higher than its IPO price of ₹279. Despite the recent surge, the stock remains 32% below its listing price but is now trading about 7% above its IPO price. Since reaching its all-time high of ₹698 in December, the stock has lost more than half its value. Analysts believe the recent decline was driven by a combination of technical and fundamental factors, including the lock-in expiration, leadership changes, and regulatory challenges impacting the company’s credit business.

Update on Mobikwik’s Share Price – March 19, 2025

On March 19, Mobikwik’s stock continued its upward trend, rising 19.99% to close at ₹298 per share, up from its previous closing price of ₹248.35. The stock opened at ₹254.55 and fluctuated between ₹248.85 and ₹298 during the trading session. With a market capitalization of ₹2,317.56 crore, Mobikwik’s stock has exhibited significant volatility. It previously reached a 52-week high of ₹698.30 and a low of ₹231.05. On the Bombay Stock Exchange (BSE), over 2.45 million shares were traded.

What’s Driving the Volatility?

Several factors have contributed to the recent fluctuations in Mobikwik’s stock price. The expiration of the lock-in period allowed a large number of shares to enter the market, creating selling pressure and triggering a 15% drop over five days. However, the stock rebounded sharply on March 18 and 19, likely due to bargain-hunting by investors who saw value at lower price levels. Additionally, leadership changes and regulatory hurdles in the company’s credit business have added to market uncertainty, making the stock more volatile.

Key Points for Investors

1. Lock-in Period Expiry: The release of 5 million shares into the market increased supply, leading to short-term price declines.
2. Recovery: A 20% surge on March 18 and another 19.99% rise on March 19 suggest strong buying interest at lower levels.
3. IPO Performance: While still 32% below its listing price of ₹440, the stock is now trading 7% above its IPO price of ₹279.
4. Market Sentiment: Analysts highlight both technical (lock-in expiry) and fundamental (regulatory challenges) factors as key influences on the stock’s performance.

What’s Next?

Investors should closely monitor Mobikwik’s stock in the coming days to assess its reaction to ongoing market developments. The recent recovery indicates optimism among some investors, but the company’s ability to navigate regulatory challenges and stabilize its credit business will be crucial for long-term growth. Given the stock’s history of volatility, caution is advised, and investors should carefully weigh the risks and opportunities before making decisions.

In summary, Mobikwik’s stock has experienced significant movement, with a sharp decline followed by a strong rebound. Although it remains below its all-time high, the recent surge reflects renewed investor interest. However, the company’s future performance will depend on how well it manages regulatory issues and stabilizes its business operations.