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The MobiKwik Initial Public Offering (IPO) concluded with exceptional results, significantly exceeding expectations. The offering, which ran from December 11th to December 13th, saw an overwhelming 125.69 times oversubscription. This impressive figure demonstrates strong investor confidence in the Gurugram-based fintech company and its future prospects. The breakdown of subscriptions reveals robust participation across all investor categories. Retail investors contributed a staggering 141.78 times oversubscription, while Non-Institutional Investors (NIIs) subscribed 114.7 times, and Qualified Institutional Buyers (QIBs) showed strong interest with a 125.82 times oversubscription rate. This widespread enthusiasm underscores the market's positive sentiment towards MobiKwik's business model and growth potential.
The IPO was priced within a band of Rs 265 to Rs 279 per share. However, the grey market premium (GMP) – a measure of the unofficial trading price before listing – significantly exceeded the upper price band. As of December 15th, MobiKwik's unlisted shares were trading at Rs 444 per share, representing a premium of Rs 165 or a remarkable 59.14% above the upper price band. This substantial GMP indicates strong market anticipation for a successful debut on the stock exchanges. The escalating GMP also highlights the increasing enthusiasm surrounding MobiKwik, exceeding even the initial 55.9% premium observed on the first day of the IPO. This reflects the growing confidence in MobiKwik's long-term prospects and its ability to capitalize on the burgeoning Indian fintech market.
The allotment of shares to successful applicants is scheduled for December 16th. Investors who were allocated shares will see a debit reflecting their investment in their bank accounts. The official listing of MobiKwik on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) is slated for December 18th, marking a significant milestone for the company. Investors can check their allotment status through the official BSE website (https://www.bseindia.com/investors/applicheck.aspx) or Link Intime's portal (https://www.linkintime.co.in/InitialOffer/public-issues.html) using their application number or PAN. The IPO consisted entirely of fresh equity shares worth Rs 572 crore, indicating MobiKwik's intention to utilize the funds for expansion and growth initiatives. This is a revised size from previous attempts; the company initially planned a much larger IPO of Rs 1,900 crore in 2021, later scaling it down to Rs 700 crore earlier in 2024 before settling on the current figure. This strategic scaling down likely reflects a more cautious approach to market conditions and a focus on achieving sustainable growth.
The successful IPO follows MobiKwik's securing of Rs 257 crore from anchor investors a day before the IPO launch. Anchor investors are typically large institutional investors who invest in the IPO before it opens to the public, demonstrating their confidence in the company's potential. MobiKwik, founded by Bipin Preet Singh and Upasana Taku, offers a comprehensive suite of fintech services including digital payments, credit solutions, investments, and insurance through its flagship mobile application. The company's reduced IPO size, compared to initial plans, reflects a strategic adaptation to market dynamics and a focus on achieving sustainable and profitable growth. The book-running lead managers for this IPO are SBI Capital Markets and DAM Capital Advisors Ltd., both reputable entities in the Indian financial industry. The successful listing on December 18th is expected to solidify MobiKwik's position within India's rapidly expanding fintech ecosystem, further boosting its brand recognition and market share.
Source: MobiKwik IPO: Know Latest GMP, Allotment, and Listing Dates