One Mobikwik Systems made an impressive debut on Dalal Street on Wednesday, December 18, 2024. The company’s shares were listed at ₹442.25 on the Bombay Stock Exchange (BSE), marking a remarkable 58.51% premium over its IPO allotment price of ₹279. On the National Stock Exchange (NSE), Mobikwik’s shares opened at ₹440. This stellar debut brought cheer to IPO investors, who earned a substantial profit of ₹163.25 per share on listing day.
Currently trading at around ₹520- ₹525, Mobikwik’s listing performance aligns closely with expectations in the grey market. Prior to its debut, Mobikwik’s unlisted shares were trading at ₹439, representing a grey market premium (GMP) of ₹160 or 57.35% over the IPO issue price of ₹279, according to sources tracking grey market trends.
The robust listing was bolstered by Mobikwik’s recent shift to profitability and growing investor confidence in the digital payments space. Analysts believe the company’s ability to sustain this momentum will depend on its strategy to maintain profitability while carving a niche in the highly competitive fintech industry.
The Mobikwik IPO comprised a fresh issue of 20,501,792 shares, raising a total of ₹572 crore. The IPO price band was set at ₹265-279 per share, with a minimum lot size of 53 shares. Investor demand for Mobikwik was overwhelming, as the IPO was oversubscribed by an astounding 119.38 times by the close of the subscription window on Friday, December 13, 2024. The basis of share allotment was finalized on Monday, December 16, 2024, further fueling anticipation among investors.
The company plans to utilize the IPO proceeds strategically across key areas of growth. These include funding its financial services and payment services businesses, investing in advanced technologies such as machine learning, artificial intelligence, and data analytics, and enhancing product and technology development. Additionally, part of the funds will be allocated for capital expenditure in its payment devices business and general corporate purposes.
