MobiKwik, a leading fintech company, made a resounding debut on the stock market on December 18, with its shares surging 88% above the IPO price during intraday trading. The stock, listed at ₹440 per share on the National Stock Exchange (NSE), closed at an impressive ₹525 per share, marking a strong debut for the Gurugram-based firm. The Initial Public Offering (IPO) received an overwhelming response, with bids oversubscribed by 119.38 times, showcasing strong investor confidence in the company.
Shares Surge on Debut, Valuation Soars
MobiKwik shares, issued at a price range of ₹265-279 per share, were listed at a premium of 57.71% on the NSE, opening at ₹440. During the trading session, the stock hit an intraday high of ₹525, reflecting a remarkable 88% rise from the IPO price. On the Bombay Stock Exchange (BSE), the shares were listed at ₹442.25, marking a 58.51% premium.
Post-listing, the company’s market capitalization stood at ₹3,890.14 crore. The stellar performance of the shares underscored the growing demand for fintech stocks in the Indian market, especially for companies targeting financial inclusion.
Strong IPO Demand Drives Market Enthusiasm
MobiKwik’s three-day share sale witnessed extraordinary demand in the primary market, with investors bidding for over 141 crore shares against the 1.18 crore shares on offer. The IPO raised ₹572 crore entirely through the fresh issuance of equity shares, with no Offer for Sale (OFS) component. The overwhelming response translated into a total demand worth ₹39,542 crore.
The company’s unique position in the fintech ecosystem, with 135.41 million registered wallet users as of FY24, and its focus on bridging financial inclusion gaps, were key factors driving investor interest.
Analysts Recommend Long-Term Hold
While MobiKwik’s IPO was met with widespread enthusiasm, analysts have taken a cautious stance on its valuation. Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares, noted that the company is valued at 155 times its FY24 earnings at the upper price band. He added, “We believe the issue is richly priced and recommend a ‘Subscribe – Long Term’ rating.”
MobiKwik’s positioning as a platform business with a two-sided payments network catering to both consumers and merchants has been a significant draw. The firm aims to leverage technology to empower underserved populations in India, aligning with the government’s vision for financial inclusion.
Future Outlook for MobiKwik
As the third-largest player in India’s digital wallet space, MobiKwik’s market debut highlights its potential in the rapidly growing fintech sector. The company’s focus on technology-driven solutions and its expanding user base position it for long-term growth. Analysts expect that sustained innovation and expansion in digital payments and financial services could strengthen its market position further.
Despite its promising debut, the high valuation remains a point of discussion among investors. Market experts advise potential shareholders to adopt a long-term perspective, betting on the company’s ability to scale its operations and achieve sustainable profitability.
A Milestone for Fintech in India
MobiKwik’s stellar stock market debut not only underscores its strong fundamentals but also highlights the burgeoning investor appetite for fintech innovations in India. With its strategic focus on financial inclusion and robust demand in the IPO market, the company has set a high benchmark for future fintech IPOs in the country. However, investors are advised to exercise caution due to its steep valuations, while acknowledging its potential for long-term value creation in the digital economy.