oversubscribed – Doz World Matter

India’s tech IPO season is here to stay, as yet another tech IPO sees massive response, despite a rather subdued market sentiment. The IPO of One MobiKwik Systems Ltd., popularly known as MobiKwik, concluded on a positive note on December 13. The Gurgaon-headquartered fintech company has been prominent in India’s growing digital payments landscape, and the firm saw its initial public offering oversubscribed by a total of 119.38 times.

Overall, the response to MobiKwik’s IPO drew interest from all investor categories. Retail individual investors (RIIs), a vital segment in gauging a company’s appeal to the public, oversubscribed their allocated shares 134.67 times. Non-institutional investors (NIIs) also demonstrated robust interest, subscribing 108.95 times their quota, while the Qualified Institutional Buyers (QIBs) portion was booked 119.50 times.

The IPO also attracted bids for over 141 crore equity shares against an offer size of just 1.18 crore shares, while retail participation alone accounted for bids amounting to 27.49 crore shares, far exceeding the allocated 20.50 lakh shares. The allotment of shares for the IPO is expected to be finalized by December 16, while the listing scheduled on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is set to occur two days later, on December 18.

The Indian fintech firm had priced its IPO in the range of ₹265 to ₹279 per share, with the entire ₹572-crore issue comprising issuance of up to 2.05 crore equity shares. There was no offer-for-sale (OFS) component in this IPO, ensuring all proceeds are directed toward the company’s expansion plans. Post-IPO, the company is expected to achieve a valuation of approximately $250 million, according to a report by The Economic Times.

The IPO’s success was evident in the unofficial grey market as well, where the firm’s shares commanded a premium of ₹158 per share. This translates to an estimated 56% gain over the upper price band of ₹279. For now, the firm plans to use the proceeds from the IPO to further strengthen its presence in the fintech space, including investing in AI, machine learning, and financial and payment services, amongst others.

Speaking more about MobiKwik itself, the firm was founded in 2009 by Bipin Preet Singh and Upasana Taku. Since then, it has grown to become one of India’s leading digital financial services providers, and its portfolio includes a variety of fintech services. This includes digital payments, a buy-now-pay-later (BNPL) offering, and a payment gateway solution, and the company has actively targeted underserved regions, with 72% of its digital loan disbursements occurring in Tier 3 cities and beyond.

Despite reporting a net loss of ₹6.6 crore in the first quarter of FY25, MobiKwik clocked a growth in its operating revenue for the period – it amounted to ₹342.2 crore. Its payment gross merchandise value (GMV) grew at a compound annual growth rate (CAGR) of 45.88% between FY22 and FY24, while its digital loan disbursement platform, ZIP, recorded a CAGR of 112.16% over the same period.

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.

MobiKwik IPO debut

India’s IPO market defies global trends

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