117 per cent Gains in 2 Days: This IPO Becomes a Multibagger Overnight!
A stellar stock market debut doubles investor wealth in just two days
MobiKwik shares surged 14.5 per cent on Thursday, December 19, after an impressive 90 per cent jump on its trading debut. The stock has now doubled from its IPO price of Rs 279, reaching Rs 605 within two days of listing.
Strong Market Debut
The company listed at a 58 per cent premium to its issue price on Wednesday and closed the day 90 per cent higher. This makes MobiKwik’s listing the sixth-best in 2024, following companies like Vibhor Steel Tubes and Bajaj Housing Finance.
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Overwhelming IPO Subscription
MobiKwik’s Rs 572 crore IPO saw an overall subscription of nearly 120 times, with bids worth Rs 40,000 crore. All investor categories oversubscribed their portions by over 100 times. The IPO proceeds, being a fresh issue, were fully allocated to the company.
Business Overview
Founded in 2009, MobiKwik operates as a digital banking platform providing payment and financial services to consumers and merchants. The platform has over 161 million registered users and 4.26 million merchants using its services for online and offline payments.
Key Business Verticals
MobiKwik’s services are divided into two segments:
Payment Services: Includes UPI payments, bill payments, merchant transactions, and money transfers.
Financial Services: Offers credit products like MobiKwik ZIP (30-day credit), ZIP EMI (installment loans), and merchant cash advances.
Diverse Product Offerings
MobiKwik’s app enables various transactions, from recharges and bill payments to mutual fund investments and digital gold purchases. For merchants, it offers solutions like QR payments, EDC machines, and checkout options.
Revenue Contribution
For FY24, 64 per cent of MobiKwik’s revenue came from financial services, while payment services contributed the remaining 36 per cent.
Market Capitalization
With its current stock price, MobiKwik’s market capitalization has reached Rs 4,500 crore, showcasing a strong beginning for the company as a publicly listed entity.