MobiKwik, a fintech platform originated from Gurugram, has begun its initial public offering on good investor demand. The public issue was subscribed four times in just four hours from the opening of the IPO book, and the retail portion has crossed above 16.35 times subscriptions, which means that huge interest is there in taking the equity of the firm. More than 490,000 applications have received at 1:25 PM on the first day of bidding for MobiKwik.
PC: Finance Saathi
The IPO has been priced between ₹265 and ₹279 per share and is expected to raise ₹572 crore through a fresh issue of equity shares. A minimum of one lot of 53 shares amounts to approximately ₹14,787. The IPO allocation has been structured to favor various investor categories. 75% of the IPO has been reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 10% for retail investors.
MobiKwik filed its Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (SEBI) on December 6, detailing its funding plans and growth strategy. The proceeds from the IPO will be used for a few strategic initiatives: ₹150 crore is being invested in the expansion of its financial services business, ₹135 crore is meant for payments business enhancement, and ₹107 crore would be put into research and development into data science, artificial intelligence, machine learning, and product technology.
Such phenomenal subscription rates indicate that the investors feel that MobiKwik has growth prospects. And experts are saying the IPO would be oversubscribed more than 50 times. Such positive sentiment would show up from the market, and as of now, the GMP comes around ₹136. At ₹415, it does clearly indicate a humongous premium of around about 48.75%.
Financially, MobiKwik has showcased great potential in its recent fiscal performance.
The company reported revenues of ₹342.2 crore for the quarter ended FY25, besides reporting a marginal loss of ₹6.6 crore for the quarter. MobiKwik managed to have an impressive year-on-year revenue growth of 62% for the fiscal year 2024. This growth is from ₹539 crore in FY23 to ₹875 crore for FY24. MobiKwik also ended FY24 with a profit of ₹14 crore, which establishes the possibility of sustained profitability.
MobiKwik’s IPO is special because the company becomes the second fintech from the Indian startup ecosystem to get listed on the stock exchanges after Paytm debuted in November 2021. Discussion about Paytm’s stock has been hot, especially with its recent 52-week high at ₹954 per share on December 5.
In short, it does more than reflecting on the confidence of investors towards the fintech sector and increases the appetite for digital financial solutions in India. With the company preparing for public market entry, it’s looking to use this positioning for strengthening offerings and scaling up user bases. It created huge interest among investors, mainly through retail participants. Though firm fiscal performance provides a background to strategic corporate plans, it is set to make growth in the dynamic fin-tech landscape and for these reasons, the players associated with the process are something to watch out for. The IPO closes 13 December, and investors will impatiently wait for such an offering in the short times ahead.
