Mon Dec 16 18:09:05 UTC 2024: ## Mobikwik IPO Oversubscribed by Over 100 Times, Commands High Grey Market Premium

**Mumbai, India** – The Mobikwik Systems Initial Public Offering (IPO), which opened for subscription on December 11th and closed on December 13th, was oversubscribed by a staggering 119.38 times, receiving bids for 141,72,86,992 shares against the offered 1.18 crore shares, according to Mint. This significantly outpaced other recent IPOs like Vishal Mega Mart (27.28 times) and Sai Life Sciences (10.27 times).

The overwhelming demand for the Mobikwik IPO, despite the company operating in a highly competitive sector and facing significant business challenges, has surprised market analysts. The grey market premium (GMP) for Mobikwik shares has reached ₹166, suggesting a potential debut price of ₹445 – a 59% premium over the upper price band of ₹279.

Experts attribute the investor enthusiasm to several factors:

* **Attractive Pricing:** The price band of ₹265-₹279 per share was deemed attractive, with Geojit Financial Services noting that at the upper price band, Mobikwik’s IPO was available at a 2.5 times m-cap/sales based on FY24 financials.

* **Growth Potential:** Mobikwik is a major player in the rapidly expanding digital transactions sector, projected to grow at over 20% CAGR in the coming years. SBI Securities highlighted the sector’s massive potential, expecting growth from $30 trillion in FY24 to $60-$70 trillion by FY28. Mobikwik’s focus on underserved markets also adds to its appeal.

* **Strong Recent Financials:** Mobikwik reported profitability at both EBITDA and PAT levels in FY24, showcasing a 29% CAGR in revenue during FY22-24. Nirmal Bang highlighted impressive growth in payment GMV (46% CAGR) and MobiKwik ZIP GMV (112% CAGR) during the same period.

* **Brand Recognition:** Mobikwik enjoys strong brand recognition across urban and rural India, with its product “Xtra” showing significant traction, according to SMC Global Securities.

While the overwhelming response is positive, investors are cautioned to conduct thorough due diligence and consult financial advisors before making any investment decisions. The views expressed in this article are based on reports from various analysts and brokerages and do not represent the opinion of this publication.

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