Shares of fintech giant MobiKwik today debuted on the National Stock Exchange (NSE) at ₹440 apiece, a 58 percent premium over its IPO price of ₹279, and closed at ₹528 apiece on the NSE.
One MobiKwik Systems IPO received 119.38 subscriptions. The section for Retail Individual Investors (RIIs) received 134.67 registrations, while Qualified Institutional Buyers (QIBs) received 119.50 registrations. The non-institutional investor category was subscribed 108.95 times, while the fintech raised ₹257 crore from anchor investors.
“This strong demand reflects investor confidence in MobiKwik’s growth potential within India’s growing online payments market. The fintech sector is expected to grow significantly, allowing MobiKwik to benefit from this upward trend. Overall, the successful listing indicates robust market interest and optimism about MobiKwik’s future in the fintech industry,” Bajaj Broking said in a note.
Earlier this month, MobiKwik had reduced its IPO size to ₹572 crore from ₹700 crore earlier due to volatile market conditions and stricter regulatory scrutiny of fintech players.
Proceeds from the fresh issue will be used to the tune of ₹150 crore to fund organic growth of the financial services industry; ₹135 crore to fund the organic growth of its payment services business; ₹107 crore for research and development, investments in data, machine learning and artificial intelligence and another ₹70.28 crore for capital expenditure for the payment equipment sector; and general business purposes.
In a recent interaction with the business line, MobiKwik’s co-founder and CFO, Upasana Taku, said the company is looking to launch new investment and credit products, such as credit cards, auto loans, and multiple loan products, for small merchants, MSMEs, and end-users.
“Every year we grow our turnover by more than 50 percent, despite the fact that we are the least capitalized company in our sector. We have raised only ₹1,200 crore in 15 years. Meanwhile, our competitors raised $2-$5 billion. Despite these factors, we have grown more than 50 percent for several years and while peers are not profitable, we are. We will continue to grow sales by 50 percent and remain profitable for many years to come,” she said. END
