MobiKwik, India's popular digital payments platform, recently concluded its Initial Public Offering (IPO) amid very high demand from investors. The IPO, which officially closed on December 13, 2024, saw overwhelming participation, leading to oversubscription by 119 times, indicative of strong investor confidence in the fintech sector.
With the IPO priced between Rs 265 to Rs 279 per share and comprising 2.05 crore shares, MobiKwik aimed to raise Rs 572 crore through this fresh issue. Founded back in 2008, the company has built its reputation on providing comprehensive financial services, including digital payments, investment products, and credit facilities.
The enthusiastic response from the market highlights MobiKwik's strategic position as the largest player in India’s prepaid payment instruments space, commanding over 23% market share by gross transaction value as of May 2024. This placement within the fintech hierarchy is likely to attract substantial attention from potential investors.
According to the Economic Times, "The IPO of Mobikwik received massive response from investors with an overall subscription of 119 times at close." Retail investors contributed significantly, subscribing 134.67 times their reserved quota, followed by Qualified Institutional Buyers, who bid for 119.50 times their allocation. This interest is expected to reflect positively on the stock's performance once listed on December 18, 2024, on both the BSE and NSE.
For those who participated, today's pivotal moment is the announcement of share allotments, which is scheduled for December 16, 2024. Investors eager to check their allotment status can do so online via the BSE and NSE websites, as well as on Link Intime India's portal. The guidance to do this is straightforward: visit the respective website, choose MobiKwik from the dropdown, and enter either the application or PAN number to retrieve the status.
Market observers have noted strong grey market activity, with MobiKwik's shares trading at approximately Rs 444, translating to a Grey Market Premium (GMP) of Rs 165, or about 59% over the upper price band. This shows significant optimism surrounding MobiKwik’s performance. Further solidifying this, the company reported consolidated revenues of Rs 875 crore for FY24, representing 62% growth from the previous year, along with posting its first net profit of Rs 14 crore.
Following the allotment, shares will be credited to investors' Demat accounts as of December 17, 2024. Considering the initial performance and the currently anticipated listing price, MobiKwik is aiming to attract substantial investor interest and position itself firmly within the public market.
With this IPO, MobiKwik is seeking to pave the way for future investments not just for immediate growth but also for long-term technological advancements, including investments in artificial intelligence and machine learning to bolster its service offerings.
Recognizing the increasing digital commerce trend, the firm has established itself with over 161 million registered users and 4.26 million merchants as of June 2024. This commanding presence allows MobiKwik to cater to both consumers and merchants effectively, increasingly making it integral within India's growing digital finance narrative.
The strategic reduction of the IPO size from earlier investment intentions demonstrates MobiKwik's adaptability to market conditions and investor sentiment, highlighted by the interest levels seen during this offering.
With many anticipating its market debut, industry experts predict the premium trading metrics will translate to favorable listing conditions and investor gains as the fintech sector continues to evolve.
Future developments within MobiKwik's operational framework and growth strategy will no doubt be closely watched as it embarks on this public venture, aiming for sustained success within the competitive digital payments and financial services market.
Establishing its foothold during this IPO launch not only enhances its financial positioning but also solidifies investor trust, paving the way for MobiKwik's future endeavors.
