Mobikwik shares pop 58% on stock market debut; market cap tops Rs 3,870 crore

One Mobikwik Systems, which runs the digital payment application Mobikwik, made a strong stock market debut Wednesday, with its shares opening 58.6% higher than their issue price in the initial public offering and soon gaining as much as 88%.

The shares started trading at Rs 442.25 on the BSE, compared with the IPO price of Rs 279. On the NSE, they opened at Rs 440, up 57.7% from the issue price.

At 11 am, the shares were trading at Rs 516.45 on the BSE, after gaining to a high of Rs 524.00, with a market capitalisation of more than Rs 4,000 crore.

The Gurugram-based company raised Rs 572 crore through the public issue, which was its second attempt to list in India.

Also Read: Decoding Mobikwik’s IPO frenzy despite business challenges

While it had first decided to raise Rs 700 crore in January, as per the prospectus filed with the market regulator, the issue size was eventually reduced to Rs 572 crore.

The IPO had witnessed bids for nearly 120 times the issue size.Retail investors bid for 134 times the portion reserved for them, while the demand from non-institutional investors is 108 times and that from institutional investors is 119.5 times, BSE data showed.

Prior to the public issue, Mobikwik raised Rs 257.4 crore from anchor investors. This anchor placement round saw 21 investors, including 10 domestic funds which accounted for Rs 137.4 crore of the total amount raised.

Mobikwik’s institutional shareholders include Peak XV Partners, Abu Dhabi Investment Authority and American Express. None of its investors are selling their shares through the IPO.

In its third attempt to go public, Mobikwik has not only reduced the size of the IPO, it took a massive cut in its valuation as well. In 2021, Mobikwik was valued at $921 million in the private market, while it is now around $250 million.

In FY24, the company reported an operating revenue of Rs 875 crore, up 62% on year.