[Update] MobiKwik IPO: Issue Oversubscribed 20.41X Times On Day 2

Update | December 12, 6:30 PM

With investors bidding for 24.23 Cr shares against the 1.18 Cr on offer, MobiKwik’s IPO ended the second day with an oversubscription of 20.41X. 

The IPO continued to see the maximum interest from retail investors on Day 2, with these investors bidding for 13.95 Cr shares against the 21.58 Lakh shares reserved for them. This led to an oversubscription of 64.65X.

Meanwhile, non-institutional investors’ (NIIs) quota was oversubscribed 30.07X on day two. These investors bid for 9.73 Cr shares as against the 32.37 Lakh shares reserved for them.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 84% on Day 2. The QIBs bid for 54.45 Lakh shares against the 64.75 Lakh shares reserved for them.

Update | December 12, 3:25 PM

MobiKwik on the second day of its initial public offering (IPO) saw an oversubscription of 14.52 times so far. Till 2:18 PM, the investors placed bids for 17.23 Cr shares against 1.18 Cr shares on offer.

The retail individual investor segment showed the highest enthusiasm for the IPO on the second day, placing bids for 11.20 Cr against 21.58 Lakh reserved from them. This translates into an oversubscription of 51.90X.

The non-institutional buyer’s portion was oversubscribed 20.38 times, attracting bids for 6.61 Cr shares against 32.75 Lakh shares on offer.

However, the response from qualified institutional investors to MobiKwik’s IPO was tepid on the second day of bidding too, as they bid for a mere 33.80 Lakh shares against 64.75 Lakh shares set aside for them.  

Update | December 12, 11:58 AM

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 1.18 Cr shares. 

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. 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.