Fintech Giant MobiKwik’s Shares Make Thumping Debut With 58.5% Premium Over IPO Issue Price

Shares of financial giant MobiKwik made a stunning start on Dalat Street today (December 18), with the stock listing at INR 442.25 on the BSE, a 58.5% premium over the IPO issue price of INR 279.

MobiKwik, founded in 2009 by Bipin Preet Singh and Upasana Taku, is a digital banking platform that provides a variety of financial solutions to customers and merchants. The fintech startup makes money by offering consumer payments, buy now pay later (BNPL), and payment gateway services.

On the NSE, MobiKwik shares were listed at INR 440 each, a 57.7% premium to the issue price.

The stock increased by nearly 88% during intraday trade to INR 524 per share on the BSE. At the time of writing, MobiKwik’s market capitalization was INR 3,915.39 Cr (about $461 Mn).

Related: Fintech Unicorn MobiKwik Reaches SEBI, Reduces IPO Lot Size To INR 572 Cr

MobiKwik has become the second fintech business to go public, following Paytm, which made its stock market debut in 2021.

Investors responded enthusiastically to MobiKwik’s initial public offering (IPO). The issue had a 119.38X oversubscription on the final day of bidding on December 13.

Overall, investors bid for 141.72 crore shares, versus 1.18 crore on offer.

It should be emphasized that MobiKwik’s investors did not sell any shares during the share transaction. MobiKwik’s IPO comprised entirely of a fresh issue of equity shares worth up to INR 572 crore.

The startup has also introduced Vibe, a sound box product, to compete with Paytm and PhonePe. Notably, MobiKwik joined the unicorn club in October 2021.

The startup competes with Paytm, Freecharge, Simpl, PhonePe, and Google Pay in India’s rapidly rising fintech market, which is expected to be worth $2.1 trillion by 2030.

MobiKwik reported a net loss of INR 6.6 crore in the June quarter of fiscal year 2024-25 (Q1 FY25), compared to a profit of INR 3 crore in the previous year. The operating revenue for the quarter under review was INR 342.2 crore.

Its public listing coincides with a surge in startup IPOs in the Indian stock market. More than a dozen new-age Internet companies, including Swiggy, BlackBuck, and Ola Electric, went public this year.

Meanwhile, BlueStone, Ather Energy, and DevX plan to list on bourses in the coming months.