Retail Surge Powers MobiKwik IPO to 10X Oversubscription on Day 2

MobiKwik’s initial public offering (IPO) received an enthusiastic response on its second day of bidding, as the issue was oversubscribed by 10.05 times by December 12. 

According to data from the BSE, cumulative bids for 11.92 crore shares were received by 11:12 AM against an offer size of 1.12 crore shares.  

Retail Individual Investors (RIIs) drove the strong demand, placing bids for 7.81 crore shares compared to the 21.58 lakh shares available, resulting in an oversubscription of 36.23 times. Non-Institutional Investors (NIIs) followed, bidding for 4.23 crore shares against 32.37 lakh reserved, leading to 13.17 times oversubscription. 

However, the segment for Qualified Institutional Buyers (QIBs) saw a muted response, with only 1.48 lakh shares subscribed out of 64.75 lakh on offer, achieving a subscription rate of 0.02 times.  

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This follows an already impressive oversubscription of 7.73 times on the IPO’s opening day. MobiKwik plans to raise ₹572 crore through the offering, with a price band of ₹265-279 per share. The fintech firm’s shares are scheduled to be listed on BSE and NSE on December 18.  

Ahead of the IPO, MobiKwik raised ₹257.40 crore on December 10 through its anchor book, securing investment from 21 entities, including Morgan Stanley, SBI, Whiteoak, HDFC Mutual Fund, and Axis Mutual Fund. The IPO consists exclusively of a fresh issue of shares, with no existing investors, such as Peak XV Partners and Bajaj Finance, offloading their stakes.  

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MobiKwik is targeting a valuation of $255 million during its listing, significantly lower than the $1.5-1.7 billion valuation it sought in its previous IPO attempt in 2021. Financially, the company posted a net loss of ₹6.6 crore in Q1 FY25, following a net profit of ₹14.1 crore in FY24, compared to a loss of ₹83.19 crore in FY23. Operating revenue rose 62% year-over-year to ₹875 crore in FY24.

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