Mobikwik Rallies For Second Day As 46 Lakh More Shares Become Available For Trade
After dropping 14.6% on Monday, the stock has gained over 35% in the following two days to hit a one-month high.
Shares of One Mobikwik Systems Ltd. rose over 15% on Wednesday, marking the second day of gains for the newly-listed fintech firm as the company's three-month share lock-up expired on Monday.
This means that after dropping 14.6% on Monday, the stock has gained over 35% in the following two days to hit a one-month high of Rs 344.70 per share. Shares of Mobikwik had hit a 20% upper circuit on Tuesday.
Anchor investors are allotted shares for an IPO-bound company a day before the offer opens for retail investors. Half of the allotted equity is subject to a one-month lock-in. The remaining half can't be traded for 90 days.
Ahead of its offer, Upasana Taku-founded Mobikwik allotted 92.2 lakh shares at Rs 279 apiece to 21 anchor investors for a total amount of Rs 257 crore. This means that as of March 17, the scrip had an additional float of 46.1 lakh shares available for trade.
Mobikwik's stock rose as much as 15.7% during early trade to Rs 344.70 apiece on the NSE. As of 10:45 a.m., it was trading 13.7% higher at Rs 388.75 apiece, compared to a 0.33% advance in the benchmark Nifty 50 index.
Despite the two-day jump, the stock has fallen 35.6% since its listing. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 56.7, indicating that the stock was neither overbought and nor was it oversold.
Dolat Capital Market, the only firm tracking the stock, has a 'buy' rating with a 12-month target price of Rs 700, implying an upside of 107.3%, according to Bloomberg data.
