Mon Dec 16 11:31:58 UTC 2024: ## Mobikwik IPO Oversubscribed by 120 Times, Points to Strong Investor Confidence

**MUMBAI, INDIA** – The initial public offering (IPO) of One Mobikwik Systems concluded last week with an overwhelming response from investors, exceeding expectations by a significant margin. The IPO, open for subscription from December 11th to 13th, was oversubscribed by nearly 120 times, receiving bids for 1,41,72,86,992 shares against the offered 1.18 crore shares. This significantly outperformed other recent mainboard IPOs, including Vishal Mega Mart (27.28 times oversubscribed) and Sai Life Sciences (10.27 times oversubscribed).

The extraordinary demand for Mobikwik’s shares, despite the company operating in a competitive market and facing certain challenges, is attributed to several factors, according to market analysts.

**Attractive Pricing and Growth Potential:** Experts cite the IPO’s attractive pricing band (₹265-₹279 per share) as a key driver. At the upper price band, the company’s valuation was deemed reasonable, considering its projected sales. Furthermore, Mobikwik’s position in the rapidly expanding digital transactions sector, projected to grow at a CAGR of over 20% in the coming years, fueled investor optimism. The company’s focus on serving the large untapped market of underbanked individuals in India also contributed to its appeal.

**Strong Financials and Brand Recognition:** Mobikwik’s recent financial performance, including profitability at the EBITDA and PAT level in FY24 and a 29% revenue CAGR over FY22-24, further solidified investor confidence. The company’s strong brand recognition and the growing popularity of its product, Xtra, also played a crucial role.

The grey market premium (GMP) for Mobikwik shares currently stands at ₹166, suggesting a potential debut price of ₹445, representing a 59% premium over the upper price band.

While the high oversubscription rate signals strong investor confidence, experts advise caution and recommend consulting financial advisors before making any investment decisions.

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