Wed Dec 11 18:20:39 UTC 2024: ## Mobikwik IPO Oversubscribed on Day 1, Strong Retail Interest

**MUMBAI, December 11, 2024** – Mobikwik Systems’ initial public offering (IPO) opened today, aiming to raise ₹572 crore (approximately $69 million USD) through the sale of 2.05 crore fresh shares. The IPO, priced between ₹265 and ₹279 per share, has already seen significant interest, particularly from retail investors.

By late afternoon, the IPO was oversubscribed 6.61 times overall. Retail investors demonstrated strong enthusiasm, with a subscription rate of 25.44 times the allotted portion. While the Non-Institutional Investors (NII) category subscribed 7.27 times, the Qualified Institutional Buyers (QIB) category showed minimal interest, subscribing only 0.01 times. Earlier in the day, the subscription rate was even lower, highlighting the fluctuations in investor interest throughout the day.

The IPO, which closes on December 13th, saw strong anchor investor participation, raising ₹257.4 crore prior to the public offering. Prominent investors included Norges Fund, Eastspring Investments, and several Indian mutual funds. The allotment is expected on December 16th, with listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) tentatively scheduled for December 18th.

Mobikwik, a digital payments platform, reported a net profit of ₹14.08 crore for FY24, a significant turnaround from the previous year’s loss. The company’s revenue surged by 62 percent to ₹87 crore. Its growth is attributed to increasing digital penetration in India and the expansion of its services into consumer credit, investments, and insurance.

The company plans to utilize the IPO proceeds to bolster its financial services and payment businesses, invest in research and development, and fund capital expenditures.

Despite a reported Q1 FY25 loss, attributed to pre-funding cost adjustments, analysts offer differing opinions on the IPO’s valuation. Some suggest it is richly priced, while others consider it reasonably priced given the company’s brand recognition, growth potential, and the expanding digital payments market in India. The grey market indicates a potential listing price significantly higher than the IPO price band. The final success of the IPO will depend on continued investor interest until the closing bell.

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