MobiKwik IPO: Issue Oversubscribed Above 10X On Day 2

SUMMARY

MobiKwik’s INR 572 Cr IPO saw robust demand from retail individual investors (RII) wherein they placed bids for 7.81 Cr as against 21.58 lakh shares on offer. This resulted in an oversubscription for 36.23X

Trailing behind RIIs in terms of bids were Non institutional investors (NIIS) who bid for 4.23 Cr shares versus 32.37 Lakh reserved for them, resulting in 13.17 times oversubscription

Meanwhile, the portion reserved for qualified institutional buyers (QIBs) received a tepid response with a mere subscription of 0.02X

MobiKwik’s initial public offering (IPO) received an overwhelming response on the second day for bidding today (December 12), with the issue getting oversubscribed 10.05 times.

As per BSE data, at 11:12 AM, the IPO received cumulative bids for 11.92 Cr as against an offering of 1.12 Cr shares.

Trailing behind RIIs in terms of bids were Non institutional investors (NIIS) who bid for 4.23 Cr shares versus 32.37 Lakh reserved for them, resulting in 13.17 times oversubscription.

Meanwhile, the portion reserved for qualified institutional buyers (QIBs) received a tepid response with a mere subscription of 0.02X. They placed bids for 1.48 Lakh as against 64.75 Lakh on offer.

This comes after the fintech company witnessed an oversubscription of 7.73 times on the first day of bidding.

After the IPO bidding, the shares of MobiKwik will be listed on the stock exchanges like BSE and NSE on December 18.

Just ahead of the IPO, the company mobilised INR 257.40 Cr via anchor book on December 10 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.

On the financial front, the company reported 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.