Mobikwik shares in bear grip, down 35% from IPO listing price; what's next?

Shares of One Mobikwik Systems Ltd have fallen below their IPO listing price after the recent correction in the broader market. One Mobikwik Systems shares are down 35% from their listing price of Rs 442 in the current trading session.
The fintech stock was trading over 2% higher at Rs 287 today against the previous close of Rs 279.60 on BSE. Market cap of the firm climbed to Rs 2,235.81 crore. Shares of One Mobikwik Systems clocked a turnover of Rs 2.55 crore after 0.90 lakh shares changed hands on BSE.

The stock is trading near its all time low. On March 3 this year, One Mobikwik Systems shares hit a record low of Rs 261.30.

Its RSI lies in the oversold zone, indicating there are more sellers than buyers for the stock.

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox is bearish on the stock.

"MobiKwik remains in a firm downtrend, trading below all its key exponential moving averages (EMAs), including 10, 50 and 100 day EMA,s. The stock has been consistently declining, with the Parabolic SAR confirming the bearish momentum. Additionally, the Relative Strength Index (RSI) stands at 29.55, indicating oversold conditions, but without any strong signs of reversal. The MACD continues to reflect bearish momentum, with the histogram at -41.20, reinforcing the overall weakness in price action," said Ranadive

"At this stage, MobiKwik is not a preferred buy, as the technical structure remains weak. Despite a minor recovery, there is no clear confirmation of a trend reversal. Investors should wait for the stock to reclaim key resistance levels and move above its EMAs before considering fresh entries. A sustained close above these levels would indicate renewed strength, warranting a reassessment of its potential," added Ranadive

AR Ramachandran, SEBI registered Independent analyst says, "Mobikwik is slightly bullish on the Daily charts with strong support at Rs 261. A Daily close above the resistance of Rs 290 could lead to a target of Rs 334 in the near term."

The IPO of the firm was open from December 11 to December 13, 2024. The price band of Mobikwik IPO was fixed at Rs 265 to Rs 279 per share. The minimum lot size for an application was 53 shares. The minimum amount of investment required by retail investors to bid for a lot was Rs 14,787. The Mobikwik stock listed on BSE, NSE with a 59% premium over issue price.

It opened at Rs 440 piece on BSE. The stock made its market debut with a premium of 57.71 per cent over the given issue price at Rs 440 on NSE.

The IPO of One Mobikwik Systems was subscribed 124.81 times on the third and the last day of the share sale on December 13. According to data, the IPO received 1,40,73,03,594 share applications against 1,12,75,986 shares offered during the share sale.

Mobikwik is a fintech company providing prepaid digital wallets and online payment services.