Fintech platform MobiKwik marked a stellar debut on the stock exchange, listing at ₹444, a 59% premium over its issue price of ₹279. The strong opening reflects robust investor demand and confidence in the company’s growth trajectory.
Oversubscription highlights robust demand
MobiKwik’s IPO bidding, held from December 11 to 13, saw overwhelming interest from all investor segments. Shares allocated to qualified institutional buyers were oversubscribed 34 times, while non-institutional and retail portions were oversubscribed 88 times and 113 times, respectively. The IPO, priced at ₹256-₹279 per share with a lot size of 53 shares, aimed to raise ₹572 crore through a fresh issue.
Market performance and valuation growth
After touching an intra-day high of ₹525, MobiKwik shares were trading at ₹510 by 11:14 AM, pushing the company’s market capitalization to ₹3,962 crore ($472 million). This marks a remarkable valuation increase from $197 million before the IPO, representing a 2.4x jump.
Utilization of IPO proceeds
The company has outlined strategic plans for utilizing the IPO proceeds. Around ₹150 crore will be directed toward expanding its financial services segment, ₹135 crore will bolster its payments business, and ₹107 crore will support advancements in data science, AI-ML, and product technology.
Ownership and financial performance
Before the IPO, Peak XV held the largest external stake at 16.7%, followed by Bajaj Finance with 13.41%. Co-founders Bipin Preet Singh and Upasana Taku retained significant ownership, holding 19.21% and 13.06%, respectively.
MobiKwik’s recent financial performance has also impressed investors. In FY24, the company achieved ₹875 crore in revenue, reflecting a 62% year-on-year growth from ₹539 crore in FY23. It closed FY24 with a ₹14 crore profit, transitioning from losses in previous years. For Q1 FY25, the company reported ₹342.2 crore in revenue, with a marginal loss of ₹6.6 crore.
Pioneering India’s fintech landscape
MobiKwik’s remarkable listing underscores its position as a key player in India’s fintech revolution. With a focus on leveraging advanced technologies and expanding its footprint across financial services and payments, the company is poised to drive innovation and financial inclusion.
