Shares of fintech major MobiKwik today debuted on the National Stock Exchange (NSE) at ₹440 apiece, a premium of 58 per cent over the IPO price of ₹279, and ended trading at ₹528 apiece on the NSE, according to exchange data.
One MobiKwik Systems IPO received 119.38 times subscription. The portion for Retail Individual Investors (RIIs) fetched 134.67 times subscriptions, while Qualified Institutional Buyers (QIBs) part received 119.50 times subscriptions. The category for non-institutional investors got subscribed 108.95 times, while the fintech secured ₹257 crore from anchor investors.
“This strong demand reflects investor confidence in MobiKwik’s growth potential within India’s expanding online payment market. The fintech sector is expected to grow significantly, which positions MobiKwik to capitalise on this upward trend. Overall, the successful listing indicates robust market interest and optimism regarding MobiKwik’s future in the fintech industry” Bajaj Broking said in a note.
Earlier this month, MobiKwik had reduced its IPO size to ₹572 crore from ₹700 crore previously due to volatile market conditions and higher scrutiny by the regulator over fintech players.
The proceeds from its fresh issuance 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, machine learning and artificial intelligence and another ₹70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.
In a recent interaction with the businessline, MobiKwik’s co-founder and CFO, Upasana Taku, said the company wants to launch new investment products and credit products, such as credit cards, vehicle loans, and multiple loan products, for small merchants, MSMEs, and end consumers.
“We are growing our revenue by over 50 per cent every year, despite the fact that we are the least capitalised company in our sector. We have raised only ₹1,200 crore in 15 years. Meanwhile, our competitors raised $2-$5 billion. Despite these factors, we have grown over 50 per cent for multiple years and while peers are not profitable, we are. We will continue growing top line by 50 per cent for many years and will remain profitable,” she said. ENDS
