The shares were listed at Rs 440 on the NSE, implying a premium of 57.7% to its issue price of Rs 279.
The IPO of Mobikwik received a massive response from investors with an overall subscription of 119 times at close. The Rs 572 crore IPO is completely a fresh issue of up to 2.05 crore equity shares and the proceeds will be used for growth in financial and payment services, research and development in AI and machine learning, and expansion of payment device infrastructure.
The company’s recent shift to profitability, coupled with the growing adoption of digital payments, boosted market confidence, said Shivani Nyati, Head of Wealth at Swastika Investmart, adding that “however, sustaining this momentum would depend on its ability to maintain profitability and carve out a niche in the competitive fintech sector. Investors are recommended to book profits given the high listing gains, while those wanting to hold should set a stop loss at around Rs 400.”
The IPO was oversubscribed, with bids totaling approximately $4.7 billion, about 120 times the shares offered, said Bajaj Broking Research Team, adding that “this strong demand reflects investor confidence in MobiKwik’s growth potential within India’s expanding online payment market. The fintech sector is expected to grow significantly, which positions MobiKwik to capitalize on this upward trend. Overall, the successful listing indicates robust market interest and optimism regarding MobiKwik’s future in the fintech industry.”
Founded in 2008, MobiKwik operates a dual-sided payments platform catering to over 161 million registered users and 4.26 million merchants as of June 2024. The company offers services spanning digital payments, credit, and investment products.It holds a 23.11% market share in the PPI wallet segment by gross transaction value as of May 2024, positioning it as India’s largest wallet player.It caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.
Leading NBFC Bajaj Finance, wealth fund Abu Dhabi Investment Authority (ADIA) and American Express hold stakes of 13.44%, 2.8% and 1.76%, respectively in the company.
The company’s financials reflect improving efficiency, with a consolidated revenue of Rs 875 crore in FY24, marking a 62% growth over the previous year. MobiKwik posted a net profit of Rs 14 crore, reversing losses of Rs 84 crore in FY23.
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