MobiKwik debut with 59% premium on stock exchange

Fintech platform MobiKwik made an impressive debut on the stock exchange today, listing at Rs 444—an impressive 59% premium over its issue price of Rs 279—reflecting strong investor demand.

MobiKwik's bidding period ran from December 11 to 13, with a price band of Rs 256-279 per share and a lot size of 53 shares, requiring a minimum investment of Rs 14,045. The company aimed to raise Rs 572 crore through a fresh issue.

According to the records, as of 13 December, the shares to be issued to qualified institutional investors were oversubscribed by 34X while the portion of non-institutional and retail investors was oversubscribed by 88X and 113X respectively.

Mobikwik also touched a bracket of Rs 525 per share in the morning and now (as of 11.14 AM) is currently trading at Rs 510 with a total market capitalization of Rs 3,962 crore or $472 million. Notably, before issuing the IPO issue the company was valued at $197 million which is a 2.4X jump in valuation.

According to Mobikwik, it will utilize Rs 150 crore from the IPO proceeds for the growth of its financial services business, Rs 135 crore will be allocated for its payments biz and Rs 107 crore towards research and development in data science, AI-ML, and product technology.

Before the IPO, Peak XV was the largest external shareholder with 16.7%, followed by Bajaj Finance which holds 13.41%. Its co-founders Bipin Preet Singh and Upasana Taku command 19.21% and 13.06%, respectively.

During the first quarter of the current fiscal year (Q1 FY25), MobiKwik reported revenue of Rs 342.2 crore, with a marginal loss of Rs 6.6 crore for the period. In FY24, the company achieved an impressive 62% year-on-year revenue growth, increasing from Rs 539 crore in FY23 to Rs 875 crore. It also closed FY24 on a positive note, recording a profit of Rs 14 crore.