One MobiKwik Systems shares rallied 20 percent and remained locked in the upper circuit of Rs 298 per share as the stock witnessed heavy trading volumes on March 18.
This comes a day after the stock hit a new 52-week low of Rs 231 per share on March 17 after falling 15 percent.
The stock witnessed trading volumes that were nearly 6 times its 10-day average. It has now broken its 5-day losing streak and erased all the losses recorded on the previous day.
Notably, the stock had declined on the previous day after the expiry of the three-month lock-in period. The lock-in expiry unlocked 5 million shares, equivalent to 6 per cent of the company’s outstanding equity.
The total locked-in value of these shares is estimated to be $16 million. MobiKwik shares were listed on the NSE in December last year at Rs 440 per share, a premium of about 58 percent over its issue price of Rs 279 per share.
Despite today’s gain, the stock is still down more than 32 percent from its listing price. It is now trading around 7 percent higher than its issue price. The stock has fallen by more than half from its all-time high of Rs 698 per share, which was hit in December last year.
Talking about the recent fall in its share price, Abhishek Jaiswal, fund manager at Finavenue, said, “MobiKwik’s sharp decline is driven by both technical and fundamental factors.
The anchor lock-in expiry led to selling pressure, while the resignation of Mr Chandan Joshi has further increased leadership uncertainty.
The company’s credit business has seen a sharp decline, impacted by RBI guidelines, which have constrained lending supply.”