MobiKwik IPO Soars on Day 1: A Comprehensive Insight into the ₹572-Crore Public Offering

MobiKwik’s IPO Journey Begins

The initial public offering (IPO) of One MobiKwik Systems Ltd, the parent company of the digital payment platform MobiKwik, made a promising debut on December 11, 2024. With a strong response from retail and non-institutional investors, the IPO signals significant interest in India’s rapidly growing fintech sector.

Key Highlights:

• Issue Size: ₹572 crore, comprising entirely of fresh issuance of 2.05 crore shares.

• Price Band: ₹265–₹279 per share.

• IPO Dates: December 11–13, 2024.

• Minimum Investment: ₹14,787 for 53 shares.

Subscription Status on Day 1: A Strong Start

MobiKwik's IPO garnered remarkable demand within hours of launch, as evidenced by NSE data:

1. Retail Investors:
   Retail investors led the charge, oversubscribing their portion by 11.09x. The IPO received bids for 2.39 crore shares against an offer of 21.58 lakh shares in this category.

2. Non-Institutional Investors (NII):
   The NII portion saw a subscription of 2.46x, with bids for 76.41 lakh shares compared to 32.37 lakh shares available.

3. Overall Subscription:
   By 12:21 PM on Day 1, the IPO was subscribed 2.66x, receiving bids for 3.15 crore shares versus the 1.18 crore shares offered.

Detailed Overview of the MobiKwik IPO

1. Issue Structure and Objectives

The MobiKwik IPO is a 100% book-built issue, with no offer-for-sale (OFS) component. Proceeds from the IPO will be allocated towards:

• Expanding the financial services and payments business.

• Investments in data analytics, machine learning, and AI.

• Product and technology development.

• Capital expenditure for the payment devices business.

• General corporate purposes.

2. Anchor Investor Participation

Prior to the IPO launch, MobiKwik raised ₹257.40 crore from anchor investors, allotting 92.26 lakh shares at ₹279 per share. Approximately 53.42% of the shares were allocated to domestic mutual funds through ten schemes.

About MobiKwik: India’s Fintech Pioneer

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik began as a mobile wallet platform and has since evolved into one of India’s largest Buy Now Pay Later (BNPL) fintech companies.

Business Highlights:

• Services: Mobile wallet, UPI payments, bill payments, e-commerce, peer-to-peer transfers, and more.

• Partners: 156 million users and over 4.1 million merchant partners as of March 31, 2024.

• Growth: Revenue surged by 59% to ₹890.32 crore in FY24, with a profit of ₹14.08 crore compared to a loss of ₹83.81 crore in FY23.

Timeline and Post-IPO Developments

Key Dates:

• Subscription Close: December 13, 2024.

• Allotment Finalization: December 16, 2024.

• Demat Credit: December 17, 2024.

• Listing Date: December 18, 2024 (BSE & NSE).

What Sets MobiKwik Apart?

Market Position:

MobiKwik’s diverse offerings, including BNPL solutions, place it at the forefront of India’s digital payments landscape. Its extensive merchant network and tech-driven approach solidify its position as a leader in the fintech sector.

Future Potential:

The company’s focus on AI, machine learning, and data analytics positions it for sustained growth in the rapidly evolving payments ecosystem.

A Promising Start with Bright Prospects

The overwhelming response to MobiKwik’s IPO underscores the growing investor confidence in India’s fintech space. With a robust business model, a focus on innovation, and strong financial performance, MobiKwik is poised to make a significant impact in the public market.

As the IPO progresses, market participants eagerly await its listing to see how MobiKwik leverages the fresh capital to enhance its offerings and cement its leadership in the industry.