MobiKwik Shares End First Trading Session 90% Above Issue Price

Shares of fintech major MobiKwik closed their first trading session at INR 530.30, up 90.07% from the IPO price of INR 279.

The company made a stellar debut on Dalal Street today (December 18), with the stock listing at INR 442.25 on the BSE, a 58.5% premium against the IPO price

On the NSE, MobiKwik shares listed at INR 440 apiece, a 57.7% premium against the issue price.

With this, the company’s market cap ended the day at $485.17 Mn (INR 4,119.71 Cr). This marks a significant 90.26% uptick from its valuation at listing price of $255 Mn. However, it is pertinent to observe that MobiKwik cut its valuation significantly from the $1.5 Bn- $1.7 Bn it commanded in its last private fundraise back in 2021. 

Meanwhile, Dolat Capital became the first brokerage to initiate coverage on MobiKwik. It has given the company’s shares a ‘BUY’ rating and a price target (PT) of INR 500.

“Given favourable trends in India’s digital payments and financial services coupled with consistently improving operating performance, we expect Mobikwik to continue delivering robust Revenue/EBITDA/PAT CAGR of 45%/61%/64% over FY24-FY27E,” Dolat said.

MobiKwik has raised INR 572 Cr via its public listing to fuel its future growth. As per its red herring prospectus (RHP), the fintech company will utilise the fresh proceeds to expand its financial services and payments services business, build its AI & ML tech stack and expand its footprint in the payments soundbox market. 

The company’s IPO consisted solely of a fresh issue of 1.18 Cr shares. Its investors like Peak XV Partners, Bajaj Finance, among others, did not offloading any stake in the company.

Ahead of its IPO, brokerages were largely positive towards the fintech’s IPO. Bajaj Broking, Nirmal Bang, Geojit Securities, KR Choksey, among others recommended investors to subscribe to the issue.

Ahead of its IPO, brokerages were largely positive towards the fintech’s IPO. Bajaj Broking, Nirmal Bang, Geojit Securities, KR Choksey, among others recommended investors to subscribe to the issue. 

“The reduced size of the IPO and specific allocation of funds demonstrate strategic intent… With caution, the IPO could make MobiKwik a trailblazer in determining the path of digital finance,” Kotak Securities said in its IPO note.

Given the bullish outlook towards the IPO, the company’s public offer gained an overwhelming response from investors. Its IPO closed with an oversubscription of 119.38X, becoming one of the most heavily bid public issues of new-age tech companies. Investors cumulatively bid for 141.72 Cr shares of MobiKwik. 

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

Note: The story has been edited to add Dolat Capital’s initiation of coverage on MobiKwik.

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