Shares of One MobiKwik Systems surged 14 per cent in early trading on Thursday, reaching a high of Rs 605 on the BSE. This marks a 37 per cent increase over the past two days, following impressive listing gains on Wednesday. From its upper price band of Rs 279, the stock has delivered returns of 117 per cent. MobiKwik debuted on the exchanges on Wednesday with a substantial premium of 58.5 per cent.
The shares of MobiKwik debuted at Rs 442.25 on the BSE and Rs 440 on the NSE, reflecting a premium of 57.7 per cent.
The IPO garnered an overwhelming response, with total subscriptions reaching 119 times by the close of the offering.
This Rs 572 crore IPO consists of a fresh issue of up to 2.05 crore equity shares, with the proceeds earmarked for expanding financial and payment services, advancing AI and machine learning research, and growing the payment device infrastructure.
Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted that the company’s recent shift to profitability, along with the increasing adoption of digital payments, has bolstered market confidence. She added, "However, sustaining this momentum would depend on its ability to maintain profitability and carve out a niche in the competitive fintech sector. Investors are recommended to book profits given the high listing gains, while those wanting to hold should set a stop loss at around Rs 400."
Founded in 2008, MobiKwik operates a dual-sided payments platform, serving over 161 million registered users and 4.26 million merchants as of June 2024. The company provides services in digital payments, credit, and investment products.
As of May 2024, MobiKwik has a 23.11 per cent market share in the PPI wallet segment by gross transaction value, making it India’s largest wallet player.
The company’s investors include leading NBFC Bajaj Finance, the wealth fund Abu Dhabi Investment Authority (ADIA), and American Express, which have stakes of 13.44 per cent, 2.8 per cent, and 1.76 per cent, respectively.