Mobikwik shares surge past Rs 500 minutes after listing

After a strong debut on the bourses, Mobikwik’s shares surged past Rs 500 within minutes of listing.

At 10:01 am, the stock was trading at Rs 512.3 on the Bombay Stock Exchange (BSE). After falling briefly, the stock price climbed back to Rs 505 at 10:16 am.

The stock followed a similar path on the National Stock Exchange (NSE).

The digital banking platform listed its shares on Monday on the NSE at Rs 440, at a 57.71% premium over the upper band of the company's IPO price of Rs 279 apiece.

On the BSE, the company debuted at a premium of 58.51%% at Rs 442.25 apiece.

MobiKwik's IPO bidding started on December 11, 2024 and ended on December 13, 2024. The IPO became the second-most subscribed new-age tech IPO in the country, after being subscribed 119.38 times.

Retail individual investors showed the most confidence, oversubscribing their portion 134.67 times, while qualified institutional buyers oversubscribed their allocated shares 119.5 times. Non-institutional investors also exhibited strong demand, oversubscribing 108.95 times.

In comparison, Unicommerce's IPO saw the highest subscription at 168.39x, while co-working space operator Awfis is in the third spot, garnering 108.56x subscriptions. Travel platform Ixigo also experienced substantial interest with its IPO subscribed 98.34 times.

MobiKwik plans to raise up to Rs 572 crore through a fresh equity issue in its IPO. There is no offer-for-sale component. This structure allows existing promoters and shareholders, including co-founders Bipin Preet Singh and Upasana Taku, to retain their stakes.

The company has allocated Rs 150 crore from the proceeds to enhance its financial services, focusing on digital credit solutions such as MobiKwik ZIP and ZIP EMI, designed for retail and SME clients with a default loss guarantee. Additionally, Rs 135 crore will support organic growth within its core payments business.

MobiKwik also plans to invest in artificial intelligence and machine learning to improve user experience and strengthen fraud prevention measures.

Despite MobiKwik reporting a Rs 6.6 crore loss in the first quarter of FY25, the company’s leadership is optimistic about long-term profitability.

MobiKwik has successfully reduced fixed costs from 47% to 30% of revenue while improving gross margins, achieving 19% for FY24 and 16% in Q1 FY25.

The Gurugram-based fintech firm witnessed a 62% revenue growth in FY24 reaching Rs 875 crore, compared to Rs 539 crore in FY23. It also returned to profitability, posting a net profit of Rs 14 crore in FY24 after recording a loss of Rs 84 crore in the previous year, as per RoC filings.