Shares of One MobiKwik Systems Ltd tumbled over 14% to ₹231.10 on Monday, hitting a fresh 52-week low, as the three-month lock-in period for pre-IPO shareholders ended. The stock has now corrected over 61% from its post-listing high of nearly ₹700 and has slipped below its IPO price of ₹269.
As part of the lock-in expiry, 46 lakh shares (approximately 6% of the company’s outstanding equity) have become eligible for trading, leading to significant selling pressure. The fintech firm, which operates as a payments solutions provider, has seen heightened volatility in recent sessions, with investors keenly watching its post-lock-in price action.
Despite its strong presence in India’s digital payments ecosystem, MobiKwik’s stock has been underperforming amid broader fintech sector concerns and selling pressure from pre-IPO investors.
Stock Details
- Current Price: ₹248.20
- Previous Close: ₹270.65
- Day Range: ₹231.10 – ₹269.55
- 52-Week Range: ₹231.10 – ₹698.30 (New 52-Week Low)
- Market Cap: ₹19.34 Billion
- Average Volume: 4.22M
When a lock-in period ends for a stock, particularly for pre-IPO investors, anchor investors, or employees holding ESOPs, the shares that were previously restricted from being sold become available for trading in the open market. This often leads to increased selling pressure, which can impact the stock price.
Effects of Lock-in Period Expiry:
- Increased Supply: Since a large number of shares become available, selling pressure typically increases.
- Stock Price Volatility: If many investors choose to sell their shares immediately, the stock price may drop sharply due to excess supply.
- Profit Booking: Early investors, including venture capitalists, private equity firms, and company insiders, may sell to book profits, leading to a temporary dip in stock price.
- Market Sentiment Impact: If major shareholders retain their stakes after the lock-in, it may indicate confidence in the company’s future, stabilizing the stock price.
- Institutional vs. Retail Impact: Institutional investors may gradually offload their shares to avoid significant price drops, while retail investors might react emotionally, causing short-term price swings.
Disclaimer: Stock market investments are subject to risks. Investors are advised to conduct their due diligence before making any decisions.
