The Mobikwik Systems Limited IPO continued to generate significant interest on its second day, after a stellar opening on December 11, 2024. The IPO was fully subscribed within the first hour of launch and ended Day 1 with 7.31x subscription.
By 10:35 AM on Day 2, bids were received for 10.48 crore shares, compared to the 1.18 crore shares available. Retail investors led the way with bids for 6.79 crore shares against the 21.58 lakh shares reserved for them. Non-institutional investors also showed high enthusiasm, with their portion subscribed 11.46x.
Grey Market Premium (GMP) Soars
Mobikwik’s IPO grey market premium (GMP) rose to ₹149 on Day 2, indicating a potential 53.41% listing gain over the upper price band of ₹279 per share. This strong GMP reflects positive market sentiment and investor confidence.
Should You Invest?
Market analysts are optimistic but cautious. Shivani Nyati of Swastika Investmart Ltd. recommends the IPO for high-risk investors, citing Mobikwik’s profitability turnaround and growth prospects, despite stiff competition in the fintech sector. Geojit Financial Services also gave a “Subscribe” rating, pointing to the company’s strong brand, diversified offerings, loyal customer base, and positive industry outlook.
IPO Details
- Size: ₹572 crore
- Price Band: ₹265-₹279 per share
- Utilization of Funds: Organic growth (₹150 crore), R&D (₹107 crore), payment services expansion (₹135 crore), and capital expenses (₹70.2 crore).
- Subscription Period: Closes December 13, 2024
- Allotment Date: December 16, 2024
SBI Capital Markets and DAM Capital Advisors are the lead managers, and Link Intime India is the registrar.
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