Once a 150% multibagger, One Mobikwik shares now trade 26% below IPO price. Time to exit?

Fintech firm One Mobikwik Systems’ 13% intraday surge on Tuesday proved fleeting, with the stock paring most gains to close up just 2%, though it managed to snap a three-session losing streak. The rally was sparked by BSE’s approval for its subsidiary to commence broking operations. However, the company’s prolonged spell of underperformance remains a familiar narrative for investors and the question is whether the company can shed weakness following this move.

One Mobikwik Systems' shares ended at Rs 205.79 on Tuesday, implying a 26% slide from the IPO price band of Rs 279 crore.

Fall from grace

Mobikwik's debut on the domestic stock exchanges was something any company aspiring for a listing would wish for. Its stock was listed on December 18, 2024 on the NSE at Rs 440 apiece, a 48% premium over the issue price.

In just six sessions it became a 150% multibagger, hitting a high of Rs 698 on December 26, 2024. The stock is now down 70% from its peak.

Incorporated in 2008, Mobikwik offers prepaid digital wallets and online payment services. The company provides a range of payment services, enabling consumers to pay utility bills, make purchases from merchants and transfer money to phone numbers, UPI IDs, or bank accounts.

The company's Rs 572 crore IPO generated significant interest, with the retail investors' quota booked 141 times. The issue received total subscription of 125.69 times with qualified institutional buyers (QIBs) and non-institutional investors (NIIs) portions booked 125.82 times and 114.7 times, respectively.

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BSE nod to brokerage business

Mobikwik Securities Broking Private Limited (MSBPL), a wholly-owned subsidiary of One MobiKwik has received approval from the BSE to commence its stock broking business. BSE has enabled MSBPL on its platform with effect from February 24, 2026.

The BSE nod follows the grant of stock broking registration to MSBPL by the Securities & Exchange Board of India (Sebi) in July 2025.

Mobikwik's earnings snapshot

The company returned to profitability in the December-ended quarter with a consolidated net profit of Rs 4 crore versus a net loss of Rs 55 crore in the year-ago period. According to Trendlyne data, it reported profits after seven quarters of losses.

The total revenue grew 8% to Rs 297 crore in Q3FY26 versus a topline of Rs 275 crore in the year ago period. It was its highest revenue in six quarters, the Trendlyne data revealed.

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What should investors do?

Executive Director, Co-founder & CFO Upasana Taku called BSE's nod to its stock broking business as pivotal step in MobiKwik’s evolution into a scaled financial services platform.

"India has witnessed incredible growth in retail investor participation, and we believe our platform can help demystify investing for users taking their first steps into the markets. We will continue to responsibly serve the financial needs of Bharat and build products that genuinely improve financial inclusion,” Taku said.

Dr. Ravi Singh, Chief Research Officer at Master Capital Services sees BSE approval for the company's broking business as "definitely good news." It gives Mobikwik a chance to expand beyond payments and offer investing services to its existing users, he said, while warning investors not to get carried away, as broking is already crowded with strong players and execution will matter a lot.

"Mobikwik’s stock has slipped around 26% from its issue price and is now trading at Rs 206, close to its all-time low of 190. Many fintech IPOs saw strong listing buzz but later corrected once the excitement cooled and investors started focusing on actual numbers. The company has improved its operating performance and moved closer to profitability, which is a positive sign. But growth still needs to become consistent and scalable," he said.

His suggestion to investors is to avoid making any fresh move in the stock as he sees further correction towards Rs 180-174 in the coming days.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)