The IPO of fintech company One Mobikwik Systems got tremendous support from investors on the very first day. The company’s IPO was subscribed 7.3 times on the first day i.e. on December 11. There has been an overwhelming response from retail investors. According to PTI news, this is the second attempt of the Gurugram-based company for a public offering (IPO) after its first attempt in July 2021. Earlier, the company had postponed its IPO plans due to adverse market conditions and withdrew the draft paper.
How much support did you get from whom?
According to data available on the National Stock Exchange (NSE) on Wednesday, bids were received for 8,68,26,031 shares against 1,18,71,696 shares in the share sale. The retail individual investors (RII) quota received 26.71 times subscription, while the non-institutional investors category received 8.97 times subscription and the qualified institutional buyers (QIB) quota received only 2 per cent subscription. MobiKwik has reduced the size of its IPO from Rs 1,900 crore in 2021 to Rs 700 crore in January this year and now to Rs 572 crore.
Fully subscribed within an hour
MobiKwik MD and CEO Bipin Preet Singh cited better financial performance and strategic adjustments as the reason behind reducing the IPO size, reflecting a more realistic valuation based on current market conditions. Singh said the company is sustainable and profitable, and we have recovered from our losses and we do not need so much cash at this time and this has allowed us to significantly reduce the size of the IPO. MobiKwik’s IPO was fully subscribed within an hour of the issue opening on Wednesday.
IPO will close on December 13
On Tuesday, One MobiKwik Systems said it has raised Rs 257 crore from anchor investors. The Rs 572 crore IPO will close on December 13. The company has fixed the price band at Rs 265-279 per share. This public issue is a completely fresh issue of equity shares up to Rs 572 crore, without an offer for sale (OFS) component. The company is facing tough competition from major players including PhonePe, Paytm, Airtel Payments Bank and Freecharge.
What is today’s GMP?
MobiKwik shares are trading at a premium of Rs 136 in the gray market, indicating an estimated listing price of Rs 415, an upside of 48.75%. The gray market is an informal platform for trading shares. Through this, an attempt is made to estimate the status of the IPO.
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