Mobikwik IPO Opens Amid Strong Demand and 49% Grey Market Premium
The initial public offering (IPO) of the digital wallet and online payment services firm MobiKwik was launched on December 11, 2024. The IPO has already seen robust investor interest, with the number of bids surpassing the shares available in just 90 minutes. MobiKwik plans to raise Rs 572 crore through the issuance of 20,501,792 equity shares, priced between Rs 265 and Rs 279 per share. The minimum lot size for trading is set at 53 shares.
With the proceeds from the IPO, MobiKwik seeks to strengthen its position in providing financial services and mobile payment solutions. It intends to spend funds on research and development of data, machine learning, AI, devices, technology, and payment devices. The firm also provides funds for capital expenses and other corporate uses. Link Intime India is the registrar of the issue, while SBI Capital Markets and DAM Capital Advisors are the lead managers.
Strong Investor Response Reflects High Demand
The retail investors led the acceleration, bid their fair share, and even more. By 11:21 AM on the opening day, the bids totalled 1,86,90,026 shares, higher than the available 1,18,71,696 shares. Retail participants primarily drove this increase. This enthusiasm supported the IPO’s immediate oversubscription, proving good sentiment toward the brand.
Even non-institutional investors showed interest, oversubscribing to their part of the equity portion. For this category, the response helped build on the early interest. However, it did not match the category of qualified institutional buyers. Market participants pointed out fewer bids from institutions on the first day.
Retail Participation and Early Oversubscription
Retail investors benefited from the accessible pricing and modest minimum investment size. The minimum amount needed to apply for was approximately Rs 14,787 to get 53 shares. The interested retail participants could bid for a maximum of 13 lots, or 689 shares, while their total bid amount did not exceed Rs 2,00,000. This relatively low inception probably facilitated the early participation of many small investors.
Although much more measured than retail subscribers, non-institutional investors placed many bids. This led to an oversubscription ratio of 1.57 by late morning, pointing towards interest across various investor segments.
Grey market sentiment implies a positive sentiment. Unlisted shares were traded at about Rs 415; these indicated a grey market premium of roughly nearly 48.75% of upper price band. This increased activity meant that the expectations prior to the listing were positive.
