India’s tech IPO boom continues with another overwhelming debut of One MobiKwik Systems Ltd., commonly known as MobiKwik, as shares soared 85% on the first day of trading. During the opening day, the Gurgaon-headquartered fintech company’s shares cross ₹500 mark, surpassing a market value of $464 million. In fact, the stock began trading at ₹440, which reflects a significant 57.71% premium compared to the issue price of ₹279.
Speaking about details, shares of the company were listed on the Bombay Stock Exchange (BSE) at Rs 442.25, a 58.51% premium compared to the issue price of Rs 279. Meanwhile, on the National Stock Exchange (NSE), the fintech firm listed at Rs 440 per share, reflecting a 57.71% premium. At the time of writing this article, MobiKwik’s stock touched an intraday high of ₹525 per share on NSE.
MobiKwik IPO debut
This comes after MobiKwik – founded in 2009 – drew interest from all investor categories for its IPO as Retail individual investors (RIIs) oversubscribed their allocated shares 134.67 times. Meanwhile, the IPO also garnered notable interest from Non-institutional investors (NIIs) subscribing 108.95 times their quota. And the Qualified Institutional Buyers (QIBs) category alone saw a subscription of almost 120 times. In this IPO, there was no offer-for-sale (OFS) component.
The company’s success echoes the rapid growth of the country’s digital payment market. A PwC report, citing industry experts’ forecasts, suggests that transaction values will increase from 265 trillion rupees in 2023-24 to 593 trillion rupees by 2028-29. This year, the fintech sector’s rapid growth unfolded alongside a significant rise in IPO activity in India, with over 300 companies raising nearly $18 billion in funding this year so far.
India’s IPO market defies global trends
Coming to the booming IPO market in the country, an exciting list of upcoming IPOs, including LG India, PayU, Flipkart, and more, is generating significant anticipation. Recently, Google parent Alphabet-backed Aye Finance has also filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise $171 million through an IPO. Another fresh example of a thriving IPO scenario was seen today, as alongside MobiKwik, another Indian company made its debut in the stock market. Yes! we are talking about the well-known budget retailer Vishal Mega Mart, whose stock surged 41% in its debut trade on Wednesday, giving it a valuation of $5.8 billion.
If we talk about the company itself, co-founded by Bipin Preet Singh and Upasana Taku, MobiKwik clocked a growth in its operating revenue, around ₹342.2 crore, during the first quarter of FY25 along with a net loss of ₹6.6 crore for the same period. With major players like Paytm, PhonePe, and Google Pay dominating the sector, MobiKwik has leveraged its digital payments, buy-now-pay-later (BNPL) offering, and payment gateway solution, actively targeting underserved regions, with 72% of digital loans being disbursed in Tier 3 cities and beyond.