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The MobiKwik Initial Public Offering (IPO) concluded with remarkable success, exceeding expectations in terms of subscription levels and generating significant market interest. The IPO, which opened for bidding from December 11th to December 13th, 2024, witnessed an overwhelming subscription rate of 125.69 times. This demonstrates strong investor confidence in the company and its future prospects within the burgeoning Indian fintech sector. The retail investor category showed particularly strong interest, subscribing 141.78 times the allotted shares, while non-institutional investors (NII) subscribed 114.7 times and Qualified Institutional Buyers (QIB) 125.82 times. This widespread enthusiasm underscores the appeal of MobiKwik's business model and its position in the market.
A key indicator of market sentiment towards the MobiKwik IPO is the Grey Market Premium (GMP). The GMP, representing the difference between the unlisted market price and the IPO price, reached a significant Rs 444 per share. This is a remarkable Rs 165, or 59.14%, above the upper price band of Rs 279 set during the IPO. The consistently high GMP throughout the IPO period, even showing an increase from the initial 55.9% premium, signifies a robust demand and anticipation of strong post-listing performance. This suggests that investors believe MobiKwik is undervalued at its IPO price and expect substantial returns following its listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
The allotment process for the MobiKwik IPO is scheduled for finalization on December 16th, 2024. Investors who have been allocated shares will receive confirmation via a debit message to their bank accounts. The official listing date on the BSE and NSE is set for December 18th, 2024. Investors can check their allotment status through the official BSE website or the Link Intime portal, using their application number or PAN. The IPO consists entirely of fresh equity shares, totaling Rs 572 crore, and this is MobiKwik's third attempt at going public after scaling down from its initially planned Rs 1,900 crore IPO in 2021. The company successfully raised Rs 257 crore from anchor investors a day prior to the IPO launch.
MobiKwik, co-founded by Bipin Preet Singh and Upasana Taku, has established itself as a major player in the Indian fintech landscape. Its flagship app offers a comprehensive suite of financial services, including digital payments, credit solutions, investment options, and insurance products. The decision to reduce the IPO size reflects a strategic adjustment to prevailing market conditions and the company's long-term growth objectives. The success of this smaller IPO, however, signals a renewed confidence in MobiKwik's potential and validates its revised market strategy. The book-running lead managers for the IPO are SBI Capital Markets and DAM Capital Advisors Ltd. Their expertise and market presence have undoubtedly contributed to the successful outcome of the IPO.
The listing of MobiKwik on December 18th will be a significant event for the Indian fintech market. Its performance will be closely watched as an indicator of investor sentiment towards the sector as a whole. The high level of oversubscription and the substantial GMP suggest a positive outlook. However, post-listing performance will depend on several factors, including overall market conditions, the company's ability to meet its growth targets, and its success in navigating the competitive fintech landscape. Investors will be keenly observing how the company's stock performs against the projections and the initial enthusiasm seen during the IPO period. The coming weeks and months will be crucial for MobiKwik as it integrates into the public market and seeks to solidify its position among India's leading fintech companies.
Source: MobiKwik IPO: Know Latest GMP, Allotment, and Listing Dates