MobiKwik IPO Day 1: Issue subscribed 2.66 times so far as retail investors lead, check key details

MobiKwik IPO: The mainboard initial public offering (IPO) of One MobiKwik Systems Ltd, the parent firm of online payments platform MobiKwik, opened to a strong demand on Wednesday, December 11.

The issue was fully subscribed within the first hour of launch even as two other mainboard IPOs –Vishal Mega Mart and Sai Life Sciences – opened the same day.

As per the NSE data till 12:21 pm on day 1, the MobiKwik IPO managed to garner subscription of 2.66 times, receiving bids for over 3.15 crore shares compared to 1.18 crore shares on offer.

The issue will close for subscription on December 13.

For those who are planning to subscribe to the issue, here’s a look at the important details regarding the MobiKwik IPO:

MobiKwik IPO subscription status

Retail investors led the demand for the IPO, with the portion getting oversubscribed by more than 11.09 times within hours of launch. Bids were received for 2.39 crore shares against 21.58 lakh shares on offer, according to data available on exchanges.

Non-institutional investors’ (NII) portion was booked 2.46 times, with bids received for 76.41 lakh shares against 32.37 lakh shares on offer.

MobiKwik IPO details

The price band for the issue has been fixed at ₹265 to ₹279 per share, with the lot size for an application being 53 shares. This translates into a minimum investment amount of ₹14,787 for retail investors.

The company has appointed SBI Capital Markets Ltd and Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd) as the book-running lead managers, while Link Intime India Pvt. Ltd is the registrar for the issue.

Ahead of the launch of the IPO, Mobikwik had also raised ₹257.40 crore from anchor investors. The company allotted a total of 92.26 lakh equity shares at anchor investor allocation price of ₹279 per share. Out of the total allocation to anchor investors, 49.28 lakh equity shares (i.e. 53.42% of the total allocation to anchor investors) were allocated to 6 domestic mutual funds, which applied through a total of 10 schemes.

MobiKwik IPO dates

Subscription for the Mobikwik IPO will be open during December 11 to December 13. The basis of share allotment is expected to be finalized on December 16, Monday. Successful bidders who are allotted shares can expect them to be credited to their demat accounts on December 17, Tuesday, with others receiving the refund the same. The Mobikwik stock is scheduled to list on December 18 on both BSE and NSE.

MobiKwik IPO: Use of proceeds

One MobiKwik Systems had said that the company proposes to utilise the net proceeds towards funding growth in the financial services business and payment services business, investment in data, machine learning, artificial intelligence, product and technology, capital expenditure for the payment devices business and for general corporate purposes.

About One MobiKwik Systems Ltd

One Mobikwik Systems Ltd, formerly known as One MobiKwik Systems Pvt. Ltd, is the parent firm of digital banking platform MobiKwik, which claims to be the largest ‘Buy Now Pay Later’ (BNPL) fintech and one of the largest mobile wallets in India.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company commenced operations as a mobile wallet to facilitate digital payments. Its use cases have since expanded to include bill payments, e-commerce shopping, food delivery, payments at petrol pumps, large retail chains, pharmacies, Kirana stores, etc. Its platform also enables peer-to-peer payments via Unified Payments Interface (UPI), MobiKwik Wallet as well as MobiKwik Wallet to bank payments. According to the company’s website, it has over 156 million registered users and more than 4.1 million e-commerce, physical retail, and biller partners as of March 31, 2024.

In the financial year 2023-24, the company’s revenue increased by 59% to ₹890.32 crore compared to ₹561.12 in 2022-23. The company also managed to post a profit after tax of ₹14.08 in FY24 compared to a loss of ₹83.81 in FY23.