MobiKwik lists at 58% premium: Book profit or hold?
What's the story
One MobiKwik Systems Ltd, the parent of fintech platform MobiKwik, made a strong debut on the National Stock Exchange(NSE) today, opening its shares at ₹440 each.
This is a massive premium of 57.71% over the issue price of ₹279 per share.
On the Bombay Stock Exchange (BSE), the stock listed even higher at ₹442.25 per share, marking a premium of 58.51%.
IPO details
One MobiKwik's IPO oversubscribed, raises ₹572 crore
The IPO of One MobiKwik Systems, which closed on December 13, was oversubscribed 119.38 times. The overwhelming demand was mainly due to qualified institutional buyers.
The IPO was purely a fresh issue of shares worth ₹572 crore and received bids for over 141 crore shares against an offer of only 1.18 crore shares, creating a demand worth ₹39,542 crore.
Investor backing
One MobiKwik secures ₹257 crore from anchor investors
Apart from the money raised through its IPO, One MobiKwik Systems also raised ₹257 crore from anchor investors just a day before the public issue opened for bidding.
The company intends to use the money across sectors such as financial services, payment services, and research and development in data, machine learning, artificial intelligence as well as product and technology.
Business outlook
One MobiKwik's financial performance and future plans
One MobiKwik Systems, a platform business with a two-sided payments network of consumers and merchants, hopes to leverage technology as the main driver to enable financial inclusion for India's underserved.
The company became profitable in the last fiscal year, reporting a profit of ₹14.1 crore against a loss of ₹83.8 crore in FY23.
Its revenue from operations also grew sharply from ₹540 crore in FY23 to ₹875 crore in FY24.
Market position
One MobiKwik's market valuation and future goals
After the listing of its shares, One MobiKwik Systems's market valuation was at ₹3,890.14 crore.
The company's flagship app, MobiKwik, offers consumers a range of payment options and financial products in digital credit, investments, and insurance.
As of FY24, the company was ranked third in terms of registered wallet users with 135.41 million users.
Co-founder Bipin Preet Singh has said the company aims to capture a 10% market share in the entire UPI ecosystem.