Mobikwik is all set to make its debut on the stock exchanges today, sparking excitement among investors. The company’s shares are trading at a grey market premium (GMP) of ₹160, suggesting a potential 57% listing gain based on the issue price’s upper band of ₹279.

 

However, experts caution that GMP trends are only indicative and may not always align with actual market performance.

 

Strong Investor Response to IPO

 

The ₹572 crore IPO saw overwhelming interest, with a subscription rate of 119 times, making it one of the most sought-after offerings recently. The funds raised through the IPO will be used to boost the company’s digital payment infrastructure, invest in AI and machine learning technologies, and expand payment devices.

 

Mobikwik at a Glance

 

Founded in 2008, Mobikwik has grown into a leading digital payments platform in India. It serves over 161 million users and 4.26 million merchants, offering services like:

                •             Kwik QR scan and pay

                •             MobiKwik Soundbox (Vibe)

                •             Merchant Cash Advance

                •             Online checkout and EDC machines

 

With a 23.11% market share in the PPI wallet segment (as of May 2024), it is the largest player in this space.

 

Financial Snapshot

 

Mobikwik’s financial performance has shown significant improvement in recent years:

                •             FY24 revenue: ₹875 crore (62% growth year-on-year)

                •             Net profit: ₹14 crore (compared to a loss of ₹84 crore in FY23)

 

Key Investors and Stakeholders

 

Major players hold stakes in Mobikwik, including:

                •             Bajaj Finance: 13.44%

                •             Abu Dhabi Investment Authority (ADIA): 2.8%