MobiKwik IPO Opens Today: Receives Full Subscription Within an Hour
Investors can bid for MobiKwik's IPO in multiples of 53 equity shares. The entire offering consists of fresh issues, with no offer-for-sale (OFS) component included. Here's how the company plans to allocate the ₹572 crore:
MobiKwik IPO Opens Today : India’s fintech giant MobiKwik launched its much-anticipated IPO today, Wednesday, December 11. The initial public offering received an overwhelming response as it was fully subscribed within an hour of opening. The company aims to raise ₹572 crore through this IPO. The bidding window will remain open from December 11 to December 13, offering shares at a price band of ₹279 per share.
MobiKwik IPO Details
Investors can bid for MobiKwik’s IPO in multiples of 53 equity shares. The entire offering consists of fresh issues, with no offer-for-sale (OFS) component included. Here’s how the company plans to allocate the ₹572 crore:
- Financial Services Growth: ₹150 crore will fund the organic growth of its financial services business.
- Payments Business Expansion: ₹135 crore will be invested in its payment services.
- Technology & R&D: ₹107 crore will support advancements in data, machine learning (ML), artificial intelligence (AI), and other product development initiatives.
- Capital Expenditure: ₹70.28 crore is earmarked for expanding its payment device business.
- General Corporate Purposes: The remaining funds will support other operational needs.
This strategic allocation underscores MobiKwik’s focus on becoming a leader in the competitive fintech space.
Grey Market Premium (GMP): A Positive Indicator
The IPO’s Grey Market Premium (GMP) is signaling strong potential for a stellar listing. According to reports from InvestorGain.com, MobiKwik shares are trading at a premium of ₹136 in the grey market. This suggests a possible listing price of ₹415, reflecting a 48.75% gain over the IPO price band of ₹279.
Although GMP is often used as an indicator, it is not an official measure of listing price. Real market dynamics may lead to variations when the shares officially list on December 18 on the NSE and BSE.
Strategic Importance of MobiKwik’s IPO
The funds raised from this IPO will help MobiKwik strengthen its position in India’s rapidly growing digital payments ecosystem. The fintech company has been a key player in driving digital transformation, enabling seamless payment solutions, and providing credit offerings to its users.
MobiKwik has strategically invested in technology-driven services like AI and ML to enhance customer experience, reflecting its commitment to innovation. With plans to expand its payment device business and optimize its financial services, the company is set to cater to the increasing demand for secure and user-friendly digital payment solutions.
Key Dates and Insights
- Bidding Period: December 11 to December 13, 2024
- Listing Date: Expected on December 18, 2024
- Price Band: ₹279 per share
- Lot Size: 53 shares
MobiKwik’s IPO stands out as a significant opportunity for investors seeking to participate in the growth of India’s fintech sector.
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