One MobiKwik IPO: Issue subscribed 7.31 times on Day 1. Check GMP, other details

The initial public offering (IPO) of the digital payments platform One MobiKwik Systems received a strong response on its inaugural day as the issue was oversubscribed at 7.31 times.

Subscriptions from the retail individual investors stood at 26.71 times, while the non-institutional investors subscribed 8.97 times. The qualified institutional investors' quota was booked 2% at the end of day 1.

The IPO issue will close on December 13.

The IPO is a book-built issue of Rs 572 crore, which includes a fresh issue of up to 2.05 crore equity shares.

The proceeds will be used to fund growth in financial and payment services, research and development in AI and machine learning, and the expansion of payment device infrastructure.

MobiKwik IPO: Price band

The company has set a price band of Rs 265-279 per share for its IPO, with investors able to bid for a minimum of 53 shares per lot.

MobiKwik IPO: GMP today

Vishal Mega Mart shares were trading at a premium of Rs 136 per share in the grey market which is a 49% uptick over the upper band of the issue price of Rs 279.

MobiKwik IPO preview

Analysts have advised high-risk investors to subscribe, as the IPO is priced at a slightly higher valuation. The company has shown consistent revenue growth and has recently turned profitable after previously incurring losses.

"MobiKwik is a digital payment platform catering to both customers and merchants, operates in a highly competitive fintech landscape, which may impact future growth and market share. The IPO is priced at a high valuation. Suitable only for high-risk investors," said Swastika Investmart.

MobiKwik IPO: Opening Date, Allotment and Listing Date

The MobiKwik IPO opened for public subscription on December 11 and will close on December 13. Meanwhile, bidding for the anchor investors' segment began on December 10.

About MobiKwik IPO

Founded in 2008, MobiKwik operates a dual-sided payments platform serving over 161 million registered users and 4.26 million merchants as of June 2024. The company provides digital payments, credit, and investment products. As of May 2024, it holds a 23.11% market share in the PPI wallet segment by gross transaction value, making it India’s largest wallet player.

The company’s financials show improving efficiency, with a consolidated revenue of Rs 875 crore in FY24, reflecting a 62% growth over the previous year. MobiKwik also posted a net profit of Rs 14 crore, reversing losses of Rs 84 crore in FY23.

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