MobiKwik Systems’ initial public offering (IPO) of Rs 572 Crore was fully subscribed within an hour of the issue. The initial public offering (IPO) was offered for subscription by the company starting Wednesday.

What Happened In The IPO?

According to data available from the National Stock Exchange, the initial share sale received bids for 2,16,17,852 shares. Although the fintech company has offered a total of 1,18,71,696 shares showing the high demand of the IPO

The issue was subscribed 7.69 times by Retail Individual Investors, and the Non-Institutional Investors portion received a subscription of 1.55 times. Investors can subscribe to the IPO till Friday.

Following the closure of the subscription window, the basis of the allotment of Mobikwik IPO shares is expected to be finalized on Monday, December 16, 2024. Successful allottees will get the shares credited to their demat accounts by Tuesday, December 17, 2024.

The public issue is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component, while the price band has been fixed at ₹265-279 per share. One Mobikwik Systems has successfully raised Rs 257 crore from anchor investors on the eve of the IPO, the company said

According to the RHP, Mobikwik plans to utilize the net proceeds for various purposes. The purposes include funding organic growth in its financial services and payment services businesses, research and development in data, machine learning (ML), artificial intelligence (AI), and technology. Additionally capital expenditure for its payment devices business, and general corporate purposes.

About Mobikwik

Mobikwik Systems was incorporated in March 2008. One Mobikwik Systems is a fintech company offering prepaid digital wallets and online payment services. The company provides various payment solutions, including utility bill payments, online and offline purchases, and money transfers. At its core, Mobikwik operates as a platform business with a two-sided payment network consisting of consumers and merchants.

Mobikwik had reduced its IPO size from its earlier plans. The Company has changed the amount of the IPO many times starting at Rs 1,900 crore in 2021. However it was finalized to Rs 572 crore. Its leadership cites improved financial performance and strategic adjustments behind the move. “The company has become profitable, as you can see, and is not loss-making… This has allowed us to reduce the IPO size significantly,” Co-founder Bipin Preet Singh said during a press conference.

ALSO READ: Gold Price Today: Yellow Metal Price Surges-Check Rates In Chennai, Bengaluru & More