1 week Ago By Pawan Kumar
New Delhi: Gurugram-based fintech startup Mobikwik has witnessed an overwhelming response to its Initial Public Offering (IPO), which closed on Friday. The IPO was subscribed nearly 120 times, showcasing massive demand for the company’s shares. According to data from the Bombay Stock Exchange (BSE), retail investors showed the highest interest, bidding for 134 times the shares reserved for them.
Non-institutional investors placed bids for 108 times their allotted portion, while institutional investors subscribed 119.5 times the shares set aside for them. Mobikwik offered a total of 11.
8 million shares but received bids for a staggering 1.4 billion shares during the book-building process. This response highlights the strong investor appetite for the fintech startup.
The data has triggered curiosity among investors as the IPO garnered significant attention even though it is not among the top players in the competitive digital payments industry. Here are the contributing factors and other details. 1.
Attractive Issue PriceMobiKwik IPO appears to have struck the right chord with investors, thanks to its appealing price band of Rs 265-279 per share. According to traders active in the unlisted equities market, the company’s shares were trading at approximately Rs 825 in the grey market by the end of September. 2.
Decent ReturnAs per the market experts, the unlisted shares of MobiKwik were trading at over Rs 800. This significant premium has raised expectations of a strong listing gain, attracting a flood of bids. 3.
Lowering IPO Size And ValuationThe fintech company’s decision to lower its valuation and reduce the IPO size seems to have worked in its favor. This is Mobikwik’s third attempt at going public, and the company has adopted a more conservative approach this time. In 2021, it was valued at $921 million in the private market, but it has now set a target valuation of around $250 million.
MobiKwik IPO: Latest GMPIn the grey market, the Mobikwik IPO is currently signaling a substantial premium. According to market observers, the grey market premium (GMP) for Mobikwik shares today stands at Rs 158. This suggests that the listing price could be around Rs 437 per share, combining the upper price band of Rs 279 with the GMP.
If these expectations hold, investors could see listing gains of approximately 57 percent. Mobikwik IPO: Allotment StatusThe allotment of shares for the highly anticipated initial public offering (IPO) of One Mobikwik Systems Limited is expected to be announced today, December 14, 2024. Under the "T+3" listing rule, IPOs must be listed within three days of the allotment.
However, since today is a Saturday, any potential delay could push the announcement of the Mobikwik IPO allotment status to Monday, December 16, 2024. MobiKwik IPO: How To Check Allotment Status?Once the Mobikwik IPO allotment status is announced, applicants can check it online. The status will be available on the BSE website (bseindia.
com) and on the official registrar's website, Link Intime India Private Limited (linkintime.co.in).
By logging in and entering their application details, investors can quickly find out if they have been allotted shares. MobiKwik IPO: Subscription StatusThe public issue received a strong response, with the subscription rate reaching an impressive 119.38 times.
Retail investors showed robust participation, with the retail portion being subscribed 134.67 times. The non-institutional investors' (NII) segment was booked 108.
95 times, while the qualified institutional buyers (QIB) portion witnessed 119.50 times bidding. (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice.
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