The much-anticipated initial public offering (IPO) of One MobiKwik Systems Ltd, the parent company of MobiKwik, saw a stellar opening on Wednesday, December 11, as investors showed strong demand for the ₹572 crore public issue. The IPO was fully subscribed within the first hour of launch, even as two other IPOs—Vishal Mega Mart and Sai Life Sciences—opened on the same day.
Here’s a comprehensive breakdown of everything you need to know about the MobiKwik IPO.
MobiKwik IPO Subscription Status
Retail investors led the charge on day one, oversubscribing their portion by a whopping 11.09 times. The retail segment received bids for 2.39 crore shares against the 21.58 lakh shares available.
Non-Institutional Investors (NII) weren’t far behind, subscribing their allotment 2.46 times, with bids for 76.41 lakh shares against the 32.37 lakh shares on offer.
Overall, as of 12:21 PM on the first day, the IPO was 2.66 times subscribed, receiving bids for over 3.15 crore shares compared to the 1.18 crore shares on offer.
Key Details of the MobiKwik IPO
1. Size and Structure
- The IPO aims to raise ₹572 crore entirely through fresh issuance of 2.05 crore shares.
- There is no offer-for-sale (OFS) component.
2. Price Band and Investment
- The price band is fixed at ₹265 to ₹279 per share.
- Investors can apply in lots of 53 shares, translating to a minimum investment of ₹14,787 for retail investors.
3. Use of Proceeds
The funds raised will be utilized for:
- Expanding the financial services and payment businesses.
- Investments in AI, machine learning, and product technology.
- Capital expenditure for payment devices.
- General corporate purposes.
4. Key Dates
- Subscription Period: December 11 to December 13.
- Allotment Finalization: December 16.
- Credit to Demat Accounts: December 17.
- Listing Date: December 18 on BSE and NSE.
5. Anchor Investors
Ahead of the IPO, MobiKwik raised ₹257.40 crore from anchor investors. Notably, domestic mutual funds secured 53.42% of the total anchor allocation.
About MobiKwik: A Digital Payments Powerhouse
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik began as a mobile wallet and has since expanded to become India’s largest Buy Now Pay Later (BNPL) fintech. It is also one of the country’s leading digital wallets, catering to over 156 million registered users and 4.1 million merchant partners.
MobiKwik supports a wide range of services, including:
- Bill payments, e-commerce shopping, and food delivery.
- Payments at petrol pumps, retail chains, pharmacies, and Kirana stores.
- Peer-to-peer payments via UPI and wallet-to-bank transfers.
Financial Performance
In FY24, MobiKwik showcased strong growth:
- Revenue surged 59% to ₹890.32 crore compared to ₹561.12 crore in FY23.
- The company swung to profitability, reporting a ₹14.08 crore profit after tax, a significant turnaround from the ₹83.81 crore loss in FY23.
Why Investors Are Excited
MobiKwik’s IPO is generating buzz for several reasons:
- Strong Financials: Impressive revenue growth and a profitable FY24.
- Market Leadership: Dominance in the BNPL segment and a large user base.
- Technology Investments: Focus on AI and machine learning to enhance services.
- Sector Potential: The digital payments space in India is poised for exponential growth.
As the IPO progresses, all eyes are on the listing date, with analysts expecting strong market debut given the enthusiastic response.
