One Mobikwik Systems Lists at 58% Premium, Demonstrates Strong Market Confidence in Digital Payments

One Mobikwik Systems Limited, a pioneering fintech company operating since 2008, marked an impressive entry into the public markets on Wednesday, 18th December 2024. The company, which has built a robust digital payments ecosystem serving over 161 million registered users and 4.26 million merchants, commenced trading on both BSE and NSE amid exceptional investor enthusiasm.

Listing Details of Mobikwik IPO

The company's market debut reflected strong investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, One Mobikwik Systems shares debuted at ₹440 on NSE and ₹442.25 on BSE, delivering an impressive 57.7% and 58.5% premium respectively to IPO investors. This strong opening validates the market's recognition of the company's established fintech capabilities and growth potential.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹265 and ₹279 per share, ultimately fixing the final issue price at ₹279. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:55 AM IST, investor enthusiasm continued to build, pushing the stock to ₹505.30, representing a stellar gain of 81.1% over the issue price, demonstrating sustained buying interest throughout the early trading session.

Mobikwik First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

• Volume and Value: Within just the first few hours, 174.84 lakh shares changed hands, generating a substantial turnover of ₹846.50 crore. Notably, 99.01% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed strong buying pressure with orders for 12.61 lakh shares against sell orders for 8.44 lakh shares, reflecting continued investor interest at higher levels.

Market Response and Subscription Analysis of Mobikwik 

• Market Reaction: Strong buying interest propelling the stock significantly above listing price
• Subscription Rate: The Mobikwik IPO was significantly oversubscribed by 125.69 times, with retail investors leading at 141.78 times subscription, followed by QIBs at 125.82 times, and NIIs at 114.7 times
• Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹257.40 crore before the public issue

Mobikwik Growth Drivers and Challenges 

Expected drivers of future performance:

• Strong digital payments ecosystem
• Innovative credit products like ZIP and Merchant Cash Advance
• Technology-first approach
• Trusted brand presence
• Large user and merchant base

Potential challenges:

• Intense competition in fintech space
• Regulatory environment
• Recent quarterly losses
• High valuation metrics

Utilisation of IPO Proceeds 

The ₹572 crore raised will be used for:

• Growth in financial services business
• Expansion of payment services
• Investment in data, ML, AI, and technology
• Capital expenditure for payment devices
• General corporate purposes

Mobikwik Financial Performance 

The company has shown significant improvement:

• Revenue increased by 59% to ₹890.32 crore in FY2024 from ₹561.12 crore in FY2023
• Q1 FY2025 (ended June 2024) showed revenue of ₹345.83 crore with a small loss of ₹6.62 crore
• Key metrics include RoNW of 8.66% and Debt-to-Equity of 0.73

As One Mobikwik Systems begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and achieve consistent profitability. The strong listing and sustained trading premium suggest robust investor confidence in the company's prospects in the dynamic digital payments sector.