The initial public offering (IPO) of One Mobikwik Systems, one of India’s leading payment services providers, has garnered a highly enthusiastic response from investors on its opening day, December 11, 2024. Within just 90 minutes of the IPO’s launch, the offering was fully subscribed, showcasing strong demand across various investor categories, signaling a promising start for the company’s entry into the stock market.
As of 1 pm on the first day of the IPO, the offering was subscribed over 3.5 times, with a total of 3,96,80,623 shares being bid for against the 1,18,71,696 shares available. Retail Individual Investors (RIIs) were particularly active, with their portion being subscribed 14.54 times, underscoring their confidence in the company's potential and the expected post-listing performance. Non-Institutional Investors (NIIs) also showed strong participation, subscribing 3.20 times the allotted portion, further adding to the positive sentiment surrounding the offering.
On the other hand, the Qualified Institutional Buyers (QIBs) category showed a more subdued response, receiving bids for only 8,798 shares out of the 64,75,471 shares reserved for them. This underwhelming response from institutional investors is not unusual, as they tend to place larger bids closer to the closing date of the IPO. As the subscription deadline approaches on December 13, it is expected that interest from QIBs will increase, especially considering the overall strong demand for the offering from other investor segments.
The strong initial demand for the IPO aligns well with grey market trends. MobiKwik unlisted shares were being traded at Rs 415, reflecting a significant premium of Rs 136, or 48.75%, above the upper price band of Rs 279 per share. This suggests that the market is optimistic about the company’s potential, and investors expect a healthy listing gain when the shares debut on the stock exchanges.
The IPO is a Rs 572-crore book-built issue, priced between Rs 265 and Rs 279 per share, with a lot size of 53 shares, which requires a minimum investment of Rs 14,787 for retail investors. The issue will remain open for subscription until December 13, 2024, giving investors a few more days to participate in the offering.
Once the subscription period concludes, the basis of allotment will be finalized on December 16, 2024. Successful applicants will have their shares credited to their demat accounts by December 17, 2024. Mobikwik is set to debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 18, 2024, marking a significant milestone for the fintech company. This IPO is expected to pave the way for Mobikwik’s growth in the public markets, attracting attention from both retail and institutional investors. The listing will also provide investors with an opportunity to assess the company’s future prospects, as it continues to expand its reach in India’s fast-growing digital payment space.
Mobikwik’s IPO represents not only a financial opportunity but also a pivotal moment for the fintech industry, as it seeks to capitalize on the growing demand for digital payments and related services in India. The company’s innovative offerings, strong brand presence, and wide consumer base make it one of the most anticipated IPOs of the year. Investors are hopeful that the IPO will deliver healthy returns, especially given the positive sentiment in the markets and the grey market premium, which reflects investor confidence in the company’s future trajectory.
