One MobiKwik Systems Turns Multibagger Within 2 Days Of Listing, Surges 117% From IPO Price; BUY?

Mobikwik shares continued their rally for the second consecutive day post-listing, defying the subdued market sentiment. The fintech firm's stock soared another 14% on Thursday, December 19, hitting a new high of Rs 605. This follows a 90% jump on its debut day, making it a multibagger with an overall gain of 116.8% from its issue price of Rs 279.

Stellar Debut

Mobikwik shares debuted at Rs 442.25 on the BSE, marking a 58.5% premium over the IPO price. Throughout its first trading session, the stock climbed further, touching Rs 530.70 before closing at Rs 530.30-a 90.07% gain on day one. Thursday's 14% surge further cemented the stock's status as a star performer, delivering strong returns to its IPO allottees in just two trading sessions.

IPO Details

The Rs 572 crore Mobikwik IPO witnessed exceptional demand, with the public issue being oversubscribed by an impressive 125.69 times. On the final day of bidding, the IPO attracted bids for 142.72 crore shares against the 1.18 crore shares available.

Retail Investors oversubscribed 141.78 times, Qualified Institutional Buyers (QIB) subscribed 125.82 times, and Non-Institutional Investors (NII) subscribed 114.7 times.

Profitability

Analysts highlight that its financial performance, coupled with India's rapid shift toward digital payments, has fueled investor optimism. For the financial year ending March 31, 2024, Mobikwik reported a 59% year-on-year (YoY) growth in revenue, while its profit after tax surged by a remarkable 117%.

However, market experts caution that sustaining this momentum will depend on the company's ability to consistently deliver strong financial results.

About Mobikwik

Founded as a digital wallet and payment platform, Mobikwik has expanded its services to cater to a broad range of financial needs. Users can make mobile recharges, pay utility bills, shop online or offline, transfer funds, and check bank balances through the platform. Additionally, Mobikwik supports QR code-based payments via UPI or credit cards.

With a growing customer base and a clear focus on innovation, Mobikwik has positioned itself as a key player in the digital payments revolution. Its successful IPO and subsequent market performance underscore the significant potential of India's fintech sector, making Mobikwik a stock to watch in the months to come.