MobiKwik IPO: Issue oversubscribed 7.73X on Day 1, retail investors subscribe 26.75X, NII 8.98X

The IPO of fintech startup MobiKwik Datalabs received an exceptional response from investors, with the issue being oversubscribed by 7.73 times on the first day of bidding. 

The IPO of One MobiKwik Systems Limited was quickly oversubscribed within an hour of bidding, primarily driven by retail and Non-Institutional Investors (NII) investors. By the end of the day, the issue was oversubscribed 7.32 times, with a total of 8.71 crore shares bid against the offered 1.19 equity shares, falling within the price band of Rs 265-279. The issue will close on Friday.

Retail investors subscribed 26.75 times their portion, while NII subscribed 8.98 times theirs. Qualified Institutional Buyers, however, only subscribed 0.02 times their portion. The subscription period began on Wednesday, December 11, 2024, and will end on Friday, December 13, 2024.

The Rs 572 Cr IPO of MobiKwik garnered significant interest from retail investors, who bid for 5.79 Cr shares against the 20.50 Lakh shares reserved for them. This led to an oversubscription rate of 28.27X, showcasing strong demand from this investor segment.

MobiKwik IPO Subscription Status

On the third day of subscription, the MobiKwik IPO saw a subscription rate of 7.32 times by the end of the session. The portion designated for retail investors was oversubscribed at 26.7 times, while the portion reserved for QIBs had a subscription rate of 0.02 per cent, and the portion allotted to NIIs had a subscription rate of 8.98 times on the first day. According to BSE data, the IPO received 8,69,30,070 share applications against 1,18,71,696 shares offered on Wednesday.

'Subscribe' rating

Leading brokerage firms such as Anand Rathi, Nirmal Bang, Bajaj Broking, KR Choksey, Geojit Securities, BP Wealth, Swastika Investmart, Arihant Capital, Marwadi Financial Services, Ventura Securities, GEPL Capital, Eureka Stock Broking, Master Trust Capital, and Ajcon Global have recommended a "Subscribe" rating for the issue, citing the company's strong market position, improved financial performance, and favorable industry trends that support its growth prospects.

MobiKwik's post-issue Price-to-Sales ratio of 2.5x is seen as competitive compared to its peers. The company is valued at 155x its FY24 earnings at the upper price band. It achieved profitability at both EBITDA and PAT levels in FY24. Additionally, MobiKwik's Payment GMV grew at an annual rate of 45.9%, while the ZIP GMV (Disbursements) showed an impressive annual growth rate of 112.2% between FY22 and FY24.

MobiKwik IPO Details

MobiKwik Systems is set to raise Rs 572 crore through its IPO solely through a fresh issue of shares, without including an offer-for-sale (OFS) component. The IPO will consist of 2.05 crore fresh issue shares priced at Rs 265 to Rs 279 per equity share with a face value of Rs 2. The IPO lot size is 53 equity shares and can be purchased in multiples of 53 equity shares thereafter.

A day prior to the release of the issue, One MobiKwik Systems Ltd secured Rs 257 crores from anchor investors. Participants in the anchor round included a mix of foreign and domestic institutions such as the 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.

Allotment status

The bidding for the Mobikwik IPO is set to conclude on December 13, 2024. The final allotment is anticipated to be determined by December 16, 2024. Post the IPO, Mobikwik's shares will be publicly traded on the BSE and NSE stock exchanges, with a provisional listing date scheduled for December 18, 2024.