One Mobikwik Systems block deal: Stock in focus as 8% equity may change hands today

Net1 Applied Technologies Netherlands BV, a subsidiary of South Africa-based Net1 UEPS Technologies, is reportedly planning to exit One Mobikwik Systems Ltd by selling its entire 8 per cent stake in the company through a block deal scheduled for Thursday. The shares are expected to be offered at a discount of up to 8.4 per cent to the prevailing market price, as per media reports quoting sources.

Net1 Applied Technologies Netherlands BV held 62,15,620 shares or 8 per cent in One Mobikwik Systems at the end of March quarter. The stock was listed on December 18, 2024 at Rs 442.25 on the BSE, representing a 58.50 per cent premium over the IPO issue price of Rs 279. That said, the spike proved short-lived. On Wednesday, the scrip closed at Rs 245.85 apiece, 11.88 per cent below the issue price.

Mobikwik is a fintech company that offers a range of prepaid digital wallets and online payment services. The company enables consumers to handle various financial tasks such as paying utility bills (including mobile recharges, electricity, and credit card bills), making purchases at online and offline merchants (like retail stores and fuel stations) and  transferring money to phone numbers. According to a Moneycontrol report, Net1 initially invested $40 million  or Rs 268 crore in Mobikwik in 2016 as part of a strategic partnership, integrating its virtual card technology into the Indian digital payments platform. 

The company recorded a net loss of Rs 56.03 crore in Q4, compared with a loss of Rs 67 lakh during the same period last year. The loss showed only a slight increase of 1.63 percent on a quarter-on-quarter (QoQ) basis. Revenue from operations saw a marginal increase from Rs 264.9 crore in Q4 FY24, to Rs 267.7 crore in Q4 FY25.

The Gurgaon-headquartered firm's Payments GMV (Gross Merchandise Value) rose 203 per cent year-on-year to Rs 1,15,900 crore in Q4.

The One Mobikwik Systems IPO was oversubscribed, with bids totaling approximately $4.7 billion, about 120 times the shares offered.