MobiKwik Shares Rebound 13% from Day’s Low Following ₹168 Crore Block Deal

June 26, 2025 – Shares of MobiKwik Systems Ltd. staged a sharp recovery, rebounding 13% after hitting an intraday low as the news of a significant block deal surfaced.

Net1 Applied Technologies Netherlands BV is the likely seller, offloading its stake (8.98%) in the company’s equity. The deal was worth ₹168 crore, ending the two companies’ strategic partnership.

As of 12:04 PM, the stock was trading at ₹270, up 9.86% for the day, reflecting strong buying interest and sharp upward momentum in the early afternoon session.

Key Transaction Triggers Intraday Recovery

MobiKwik’s stock dipped as much as 6.4% to hit an intraday low of ₹229.75 per share on Thursday morning. However, the sentiment quickly turned after reports emerged of a major block deal in which the company’s equity changed hands. The stock reversed losses and rose 9.86% to ₹270 at 12:04 AM.

The rebound followed Wednesday’s report indicating that Net1 Applied Technologies Netherlands BV, a subsidiary of South Africa’s Net1 UEPS Technologies, was likely to offload its entire 8.98% stake in MobiKwik through block deals.

Background: Strategic Investor Exit

Net1 had originally invested $40 million (approximately ₹268 crore) in MobiKwik back in 2016 as part of a strategic partnership to integrate its virtual card technology into the Indian digital payments ecosystem. The sale marks a full exit for the investor, following the expiry of the six-month post-IPO lock-in period on June 18.

Stock Performance and Financial Snapshot

MobiKwik had made its stock market debut in December 2024 with strong momentum, listing at a 58% premium to its IPO price of ₹279. However, the stock has since declined by over 60% from its post-listing peak of ₹698.

In its March quarter earnings, the company posted a widened net loss of ₹56 crore compared to ₹67 lakh in the same quarter last year. Revenue rose 2.6% year-on-year, and Payments GMV surged 2.3 times, though the EBITDA loss stood at ₹45.8 crore due to shrinking contribution margins.

Outlook

While the block deal triggered a short-term recovery in the stock, MobiKwik continues to trade well below its IPO price amid broader profitability concerns. The exit of a long-term strategic investor and ongoing financial losses will likely remain key focus areas for investors in the near term.

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