Fintech Platform Sees Significant Investor Demand
MobiKwik, the popular fintech platform, made an impressive debut on the stock exchange today, listing at Rs 444 per share. This represents a 59% premium over its issue price of Rs 279, signaling strong investor demand for the company’s IPO.
The bidding for MobiKwik’s initial public offering (IPO) took place between December 11 and 13, with the company offering a price band of Rs 256-279 per share. The IPO was oversubscribed by significant margins, with shares allocated to qualified institutional investors oversubscribed by 34 times. The non-institutional and retail investor portions saw even higher demand, with oversubscriptions of 88 times and 113 times, respectively.
Stock Performance and Market Capitalization
At the time of listing, MobiKwik’s shares touched a high of Rs 525, and as of 11:14 AM, the stock is trading at Rs 510. With this trading price, the company’s market capitalization stands at approximately Rs 3,962 crore ($472 million). Prior to the IPO, MobiKwik was valued at $197 million, reflecting a 2.4x jump in its valuation after the debut.
Use of IPO Proceeds
MobiKwik plans to use the funds raised from the IPO to fuel its expansion and business growth. Of the total Rs 572 crore it aims to raise, the company will allocate Rs 150 crore towards the growth of its financial services business, Rs 135 crore for its payments business, and Rs 107 crore for research and development in areas such as data science, AI/ML, and product technology.
Ownership and Shareholding
Before the IPO, MobiKwik’s largest external shareholder was Peak XV, holding a 16.7% stake. Bajaj Finance, another key investor, owned 13.41%. The company’s co-founders, Bipin Preet Singh and Upasana Taku, hold 19.21% and 13.06%, respectively.
Financial Performance
In the first quarter of FY25, MobiKwik reported revenue of Rs 342.2 crore, with a marginal loss of Rs 6.6 crore. However, the company demonstrated robust growth in FY24, with a 62% year-on-year revenue increase, growing from Rs 539 crore in FY23 to Rs 875 crore. MobiKwik closed FY24 on a positive note, recording a profit of Rs 14 crore.
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