Bumper Listing: One MobiKwik Systems Makes Stellar Debut At 60% Premium From IPO Price On Exchanges

Fintech giant One MobiKwik Systems made a stellar debut on the Indian stock market on Wednesday, December 18, as its shares were listed at a premium to the issue price. The stock opened at Rs 442.25 on the Bombay Stock Exchange (BSE), marking a 58.5% premium compared to its issue price of Rs 279. On the National Stock Exchange (NSE), the stock debuted at Rs 440, reflecting a similar premium.

The enthusiasm surrounding MobiKwik's initial public offering (IPO) was evident as the stock continued to surge post-listing. On the BSE, the stock touched a high of Rs 524, an 88% jump from its issue price. On the NSE, it scaled a peak of Rs 525 before stabilizing around Rs 500 per share on the BSE and NSE, respectively, by 10:30 am.

MobiKwik's listing surpassed even the optimistic projections of the grey market. Market observers had pegged the IPO's grey market premium (GMP) at Rs 160 per share, suggesting an expected listing price of around Rs 439 per share-57.35% higher than the issue price of Rs 279. However, the stock opened at a slightly higher valuation.

IPO Subscription
The MobiKwik IPO witnessed overwhelming demand, with a subscription of 119.38 times on the final day of bidding. The IPO offered 1.18 crore shares, but the issue received bids for a staggering 1,41,72,86,992 shares.

Financial Performance
MobiKwik's financial performance played an important role in attracting investors to the IPO. The company achieved profitability at both EBITDA and PAT (Profit After Tax) levels in FY24. MobiKwik's revenue surged by 59% YoY in FY24, PAT shot up by 117% YoY in the same period.

The company's Payment Gross Merchandise Value (GMV) grew at an annual rate of 45.9% between FY22 and FY24. ZIP GMV (Disbursements) expanded at a staggering annual rate of 112.2% during the same timeframe.

IPO Details
The MobiKwik IPO, which opened for subscription from December 11 to December 13, had a price band of Rs 265 to Rs 279 per equity share. Lead managers for the IPO included SBI Capital Markets and DAM Capital Advisors.

India's digital payments sector is poised for exponential growth. Products like MobiKwik ZIP, which provides quick and easy credit, have attracted millions of users and driven GMV growth.