• By Shreyansh Mangla
  • Tue, 02 Sep 2025 02:07 PM (IST)
  • Source:JND
Add as a preferred

MobiKwik Shares Jump 11 Percent: MobiKwik's shares saw a sharp increase of 11 per cent, in a rally linked to Abu Dhabi Investment Authority (ADIA)'s block deal. ADIA, a major investment fund and a significant shareholder in MobiKwik, exited its 2.1 per cent stake in the company. This involved selling close to 16.44 lakh shares in a single block deal, which was worth Rs 39.21 crore.

Investors such as Cisco and American Express still own parts of MobiKwik, owning 1.54 per cent and 1.34 per cent stake in the company.

ALSO READ: Semicon India 2025: IT Minister Invites Industry Leaders To Invest In India's 'Expanding Semiconductor Ecosystem'

Despite this small ray of hope, the company's June quarter shows an abysmal consolidated loss of Rs 41.9 crore, with revenues decreasing 20.7 per cent as compared to the last quarter. In Q2, the company's net loss was Rs 3.59 crore, a significant reduction from the previous quarter's Rs 56 crore. The company reported an EBITDA of Rs 6.8 crore in Q2 FY25.

Who were the buyers?

The shares were reportedly bought by institutional players, such as BoFA Securities Europe SA and SI Investments Broking Pvt Ltd, who were the notable buyers. In most cases, large-scale selling of shares is seen as a negative signal to major investors. However, in MobiKwik's case, instead of a drop in prices, the stock prices rose, leading to positive sentiment around MobiKwik's stock.

MobiKwik's unique stock price surge happened due to several reasons: first, there were strong institutional buyers, such as BofA Securities and SI Investments. These companies were ready to buy a large chunk of shares from ADIA, and their interest signaled strong investor interest in the company's future.

ALSO READ: TCS Salary Hike: TCS Rolls Out 4.5-7% Pay Raise, Employees Begin To Receive Increment Letter

Moreover, there was a reduced risk of downward pressure from a large chunk of shares being sold in the future, as ADIA, which was a major and a long-term investor, had sold its shares.

This block deal has injected a large amount of liquidity into the stock, making it much more active and attractive to traders.

As soon as the news of the block deal was released in the market, some analysts upgraded their recommendations and retail sentiment became "extremely bullish".