Of the three listings today, One MobiKwik Systems will be the most watched as the IPO saw an overwhelming response from all categories of investors with a subscription of nearly 120 times. The offer that came out with a price band of ₹265-279 a share received bids for 141.73 crore shares against 1.187 crore shares. The company has fixed the IPO price at ₹279, at the upper end of the price band. Market buzz is that the stock is likely to be listed around ₹400-410.
The entire IPO is a fresh issue, which means all the funds raised will go to the company. The retail investors were more aggressive as the quota allotted for them saw a subscription of 134.67 times. The HNI (non-institution) portion was subscribed 108.95 times and QIB’s by 119.50 times.
According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, the enthusiasm in IPO is supported by the grey market premium, currently at 59 per cent.
As part of the IPO, One MobiKwik Systems on Tuesday garnered ₹257 crore from anchor investors by allocating 92 lakh shares at ₹279 a share. Foreign and domestic institutions that participated in the anchor included marquee names such as Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC MF, Axis MF, SBI MF, and SBI General Insurance.
The proceeds from the issue will be utilised to the extent of ₹150 crore for funding organic growth in its financial services business, ₹135 crore for funding organic growth in its payment services business, ₹107 crore for research and development investment in data, ML and AI and product and technology; ₹70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.
SBI Capital Markets and DAM Capital Advisors were the book-running lead managers and Link Intime India Private Ltd was the registrar.
