Shares of One MobiKwik Systems, parent company of MobiKwik, tanked 10% on the National Stock Exchange on June 18, today, as the six-month lock-in period for its shareholders ended. About 3.8 crore shares got eligible for trading after the lock-in period ended, according to a report by Nuvama.
However, ending of lock-in period does not mean that all the shares will be sold in the open market. They only become eligible to be traded. The company was listed on the stock market on December 18, 2024. It made a strong start to its journey as a public company, listing at a premium of 58% to its IPO price of ₹279.
Currently, the stock is 65% lower than its life-time high level, and just 7.5% above its all-time low mark.
The expiry of the lock-in period comes amid persistent investor concerns over the company’s financial health. In the March quarter of FY25, the company’s net loss zoomed nearly 83 times to ₹56 crore. Its revenue from operations also declined marginally quarter-on-quarter to ₹267.70 crore from ₹269.40 crore. Its earnings before interest, tax, depreciation, and amortisation loss widened to ₹56.5 crore.
The company’s payments gross merchandise value soared 203% year-on-year to ₹1,15,900 crore. Despite the strong operational performance, it reported a consolidated net loss of ₹121.5 crore for FY25, compared to a profit of ₹14 crore in the previous fiscal. Revenue for the year rose 33.7% to ₹1,170.1 crore.
The user base reached 176.4 million as of the end of FY25, with an addition of 20.6 million new users throughout the year.
Earlier this month, the fintech firm announced the grant of 327,688 stock options to eligible employees of the company. One MobiKwik said that it each option is convertible into one fully paid-up equity shares of face value ₹2 each.
