Highlights
MobiKwik’s Stock Market Debut: An Unusual Beginning
The fintech firm MobiKwik has made a meaningful impact with its stock market debut today, launching at ₹444—an impressive increase of 59% from its initial offering price of ₹279. This considerable rise underscores strong investor interest and optimism regarding the company’s future growth.
IPO Insights and Investor Participation
MobiKwik’s initial public offering (IPO) was open for subscriptions from December 11 to December 13, with share prices set between ₹256 and ₹279 each. Key details include:
- Minimum investment: Investors were required to purchase a minimum of 53 shares, leading to an investment threshold of at least ₹14,045.
- Funding goal: The company aimed to raise approximately ₹572 crore thru this issuance.
- Oversubscription rates:
– Qualified institutional investors experienced an unusual oversubscription rate of 34 times.
– Non-institutional investors showed even greater enthusiasm with an oversubscription rate reaching 88 times.
– Retail investors exhibited remarkable interest with an oversubscription rate of 113 times.
Market Activity Today
In early trading today, MobiKwik’s stock peaked at ₹525 before stabilising around ₹510 by midday. This valuation brings the company’s total market capitalisation close to approximately ₹3,962 crore (around $472 million). Prior to this IPO launch, MobiKwik had been valued at $197 million—indicating nearly double its valuation following the listing.
Planned Allocation of IPO Funds
MobiKwik has outlined how it plans to utilise the funds raised through its IPO:
- Financial services expansion: Approximately ₹150 crore will be allocated towards expanding financial services.
- Payment solutions enhancement: Another ₹135 crore is designated for enhancing payment solutions.
- Research initiatives: About ₹107 crore will be invested in research initiatives focusing on data science as well as advancements in artificial intelligence (AI) and machine learning technologies.
Ownership Structure Prior to Public Offering
Before going public, peak XV held the largest stake in MobiKwik at approximately 16.7%, closely followed by Bajaj Finance which owned 13.41%. Co-founders Bipin Preet Singh and Upasana Taku held stakes amounting to:
- Bipin Preet Singh: 19.21%
- Upasana Taku: 13.06%
A Snapshot of Financial Performance
In Q1 FY25 (the first quarter of fiscal year), MobiKwik reported revenues totalling ₹342.2 crore but encountered a minor loss amounting to ₹6.6 crore during this period. Though, examining FY24 reveals strong growth; revenue surged by
62% year-on-year, climbing from ₹539 crore in FY23 up to a remarkable ₹875 crores in FY24—culminating positively with earnings reaching ₹14 crores by fiscal year’s end.
MobiKwik’s stock market debut marks an unusual beginning for the company as it continues on its path toward growth and innovation within the fintech sector.