Why are retail investors gung-ho about MobiKwik IPO? Know it from CEO Bipin Preet Singh

The initial public offering (IPO) of One MobiKwik Systems received a robust response from investors with the public offer subscribing more than 6 times on the first day of the offer till 4 pm (IST). The quota reserved for retail investors subscribed 24.59 times, while the category reserved for non-institutional investors subscribed 7 times at around the same time.
 
When asked why the company received such a strong positive response from the market? Bipin Preet Singh, Co-founder and CEO, One MobiKwik Systems said, “Financial technology companies in India are rising due to rapid digitalisation, which is a significant and irreversible macro trend. This growth is likely to bring more players into the market. However, if one company faces challenges, it doesn’t necessarily mean the outlook for others will also be negative. It’s essential to evaluate which companies are delivering strong performance.”
 
For the financial year ended March 2024, the company reported a profit of Rs 14.08 crore against a loss of Rs 83.8 crore in FY23. Singh said, “We are proud to be the only company in our sector that has achieved profitability. Unlike many others, we have demonstrated the ability to conduct business without resorting to cash burn, and we believe this is why investors have shown strong support for us.”
 
The IPO is entirely a fresh issue of up to Rs 572 crore and will close on December 13, Friday. Singh further added that promoters are not selling any shares in this IPO.
 
The proceeds from its fresh issuance will be utilised to the extent of Rs 150 crore for funding organic growth in its financial services business, Rs 135 crore for funding organic growth in its payment services business, Rs 107 crore for research and development, investment in data, ML and AI and product and technology and Rs 70.28 crore for capital expenditure for its payment devices business and general corporate purposes.
 
SBI Capital Markets and DAM Capital Advisors are the book-running lead managers, and Link Intime India is the registrar of the issue. The company has fixed a price band of Rs 265 to Rs 279 per equity share of face value of Rs 2 each for its maiden IPO.
 
The company has no plans to raise more funds in the coming future. Upasana Taku, Co-founder and CFO of payments service provider MobiKwik said, “We believe the amount the company is raising is sufficient for the growth for the next few years. Robust subscription by retail investors is showing the confidence of investors in the company.”