One Mobikwik Systems Limited, a leading digital payment platform in India, has reported a significant fraud incident involving unauthorized settlements in Haryana. The company estimates the financial impact of this fraud at ₹26.00 crores, according to a recent disclosure to the stock exchanges.

Fraud Details

The incident involved some registered merchants and users colluding from limited locations in Haryana to claim unauthorized settlements from the company. One MobiKwik stated that the fraudulent activities were carried out with a clear intent to gain unfair monetary advantage. The company emphasized that none of its employees, Key Managerial Personnel (KMPs), or insiders were involved in this incident.

Timeline and Discovery

According to the company's preliminary assessment, the fraudulent activities occurred between September 11 and 12. However, as the investigation is still ongoing, the exact time period is yet to be determined conclusively.

Financial Impact and Recovery Efforts

One MobiKwik initially lodged a First Information Report (FIR) for an amount of ₹40.00 crores as a risk mitigation measure. The company has already recovered approximately ₹14.00 crores, leaving a net estimated impact of ₹26.00 crores.

Legal and Preventive Measures

The company has taken several steps to address the situation:

1. An FIR has been filed with the relevant police station in Gurugram, and arrests have been made in connection with the case.
2. Legal Enforcement Agencies (LEA) have taken proactive steps to freeze and place liens on the bank accounts where unauthorized settlements were credited.
3. One MobiKwik is actively working to recover the unauthorized settled amounts from the affected customers.

Company's Response

In its statement to the stock exchanges, One MobiKwik assured that it is undertaking all possible and necessary efforts to recover the full amount over time. The company is cooperating with the ongoing police investigation and has committed to providing any necessary assistance to law enforcement agencies.

One MobiKwik also stated that it would promptly inform the stock exchanges of any material developments in the case as the investigation progresses.

This incident highlights the ongoing challenges in the digital payment ecosystem and underscores the importance of robust security measures to prevent financial fraud.

One Mobikwik Systems , a leading fintech company, has seen its shares rally impressively over the past three trading sessions. The stock gained 6% on Wednesday, continuing its upward momentum and bringing the total gains to 36% over the three-day period.

Stock Performance

The recent surge has pushed One Mobikwik's stock price to a level 8% above its initial public offering (IPO) price of ₹278.00 per share. This marks a significant recovery for the company's shares, which had previously experienced a downturn.

Trading Volume Spike

Wednesday's trading session witnessed a substantial increase in trading volume for One Mobikwik shares. The number of shares traded reached 3.60 crore, significantly higher than the 20-day average of 25.00 lakh shares. This surge in volume indicates heightened investor interest in the stock.

Ownership Changes

A notable development in the company's ownership structure occurred on Monday when Abu Dhabi Investment Authority (ADIA) exited its position in One Mobikwik. ADIA sold its entire 2.1% stake through block deals, offloading 16.44 lakh shares at ₹238.45 per share. The total value of this transaction amounted to ₹39.21 crore.

Major Shareholders

Following the recent changes, the major shareholders of One Mobikwik Systems include:

It's worth noting that small retail shareholders collectively hold a significant 28.1% stake in the company.

Stock Price Context

Despite the recent gains, One Mobikwik's stock price remains 57% below its post-listing high of ₹698.00. This indicates that while the stock has shown strong performance in recent days, it still has some ground to cover to reach its previous peak.

New Business Initiative

In a significant business development, One Mobikwik Systems has partnered with Zaapay, Crut, and ONDC to launch a chat-based bus ticketing service in Odisha. This new service is targeting 24 million commuters and aims to process 36 million rides annually. The platform is currently operational in nine cities, including Bhubaneswar and Cuttack, marking an important expansion of One Mobikwik's service offerings in the transportation sector.

The recent rally in One Mobikwik shares demonstrates renewed investor confidence in the company, possibly bolstered by its new business initiatives. However, as with all investments, it's important for investors to conduct thorough research and consider their risk tolerance before making investment decisions.