MobiKwik IPO Fully Subscribed Within Minutes Of Opening

SUMMARY

At 11:28 AM, the public issue was oversubscribed 1.76 times with investors placing bids for 1.98 Cr shares against 1.12 Cr shares on offer

The issue received an overwhelming response from retail investors, who bid for 1.52 Cr shares against 20.50 Lakh shares reserved for them; this translated into an oversubscription of 7.43X

Ahead of the launch of its IPO, MobiKwik mobilised INR 257.40 Cr via anchor book on December 10

The initial public offering of fintech major MobiKwik saw robust demand from investors on day 1 of bidding, with the public issue having been fully subscribed within an hour of opening today (December 11).

The three-day share sale opened for public subscription today and will conclude on December 13.

At 11:28 AM, the public issue was oversubscribed 1.76 times with investors placing bids for 1.98 Cr shares against 1.12 Cr shares on offer.

The issue received an overwhelming response from retail investors, who bid for 1.52 Cr shares against 20.50 Lakh shares reserved for them. This translated into an oversubscription of 7.43X.

The non-institutional buyers portion was oversubscribed 1.49 times, attracting bids for 45.69 Lakh shares against 30.75 Lakh shares on offer.

The response from qualified institutional buyers was muted on the first day of sale, with the portion garnering bids for a mere 2,968 shares against 61.50 Lakh shares on offer.

Ahead of the launch of its IPO, MobiKwik mobilised INR 257.40 Cr via anchor book on December 10. The anchor round saw participation from 21 investors, including Morgan Stanley, SBI, Whiteoak, HDFC Mutual Fund, Axis Mutual Fund, among others.

Overall, MobiKwik plans to raise INR 572 Cr via its IPO and has fixed a price band of INR 265-279 for the public issue. MobiKwik’s investors, which include Peak XV Partners, Bajaj Finance, among others, are not offloading any stake, and the IPO solely comprises a fresh issue of shares.

The company is targeting a valuation of nearly $255 Mn during the public listing, a sharp discount to the $1.5-1.7 Bn valuation it sought during its previous attempt at an IPO in 2021.

MobiKwik is set to become the second Indian fintech company to go public, after Vijay Shekhar Sharma-led Paytm in 2021.

The startup posted a net loss of INR 6.6 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) against a net profit of INR 3 Cr in the year ago period. Operating revenue stood at INR 342.2 Cr during the quarter under review.

MobiKwik had posted a net profit of INR 14.1 Cr in FY24 as against a net loss of INR 83.19 Cr in the previous fiscal year. Operating revenue rose 62% to INR 875 Cr from INR 539.5 Cr in FY23.