Paytm Rival Mobikwik drops 40% in private market trading
Indian digital payments pioneer Paytm’s disappointing IPO drags rival One MobiKwik Systems Ltd. in the private market, one of the strongest signs that demand is being shaken in what was until recently a searing stock market rally.
MobiKwik shares are priced as low as 800 rupees ($11) on the so-called gray market, down about 40% from a few weeks ago, according to investment platforms that allow trading. trade unlisted companies. Paytm has lost around 30% since its November 18 debut, even after rising 10% on Tuesday.
“MobiKwik shares were under pressure since the opening of Paytm’s IPO, but there is a steep discount since its IPO,” said Krishna Raghavan, deputy managing director of Unlistedkart LLP, a platform research and market creation for the trading of unlisted shares.
Hitesh Dhankani, founder of another such platform, UnlistedDaq, predicts that MobiKwik could fall another 20% amid growing concerns over fintech company valuations.
Gurgaon-based MobiKwik plans to raise Rs 19 billion through an initial public offering, which was expected this year. It could delay its IPO for a few months due to lack of investor demand and a 30-40% drop in valuation, the Economic Times reported on Tuesday, citing sources it did not have. identified.