Mobikwik IPO listing on December 18: Here's what latest GMP indicates

Mobikwik shares are scheduled to make their D-street debut on Wednesday, December 18, 2024. Grey market trends suggest a bumper start for the company's shares on the bourses

The unlisted shares of digital payment services provider One Mobikwik System were commanding a solid premium in grey markets ahead of their listing scheduled on Wednesday, December 18, 2024. 

 

On Tuesday, Mobikwik shares, as revealed by sources tracking unofficial markets, were trading at Rs 444 apiece, reflecting a grey market premium (GMP) of Rs 165 or 59.14 per cent per share, against the issue price of Rs 279, which is also the upper end of the IPO price band.

 

Should the current GMP trends sustain, the Mobikwik share may list at around Rs 444, yielding a return of nearly 60 per cent per share to the shareholders who were allotted the company’s shares in the IPO. However, it is worth noting that GMP trends in unregulated grey markets may not accurately predict listing performance. Consequently, actual results may diverge from projections, highlighting the importance of informed investment decisions.

 

 

Shivani Nyati, Head of Wealth at Swastika Investmart, anticipates that the stock will list at a substantial premium of roughly 59 per cent. The company, Nyati said, operates in the very competitive fintech sector, which could have an effect on its future market share and growth. Additionally, the IPO was valued significantly. “With a nearly 120 times subscription rate, and a significant grey market premium (GMP), the IPO received a resounding reaction, demonstrating great investor confidence,” she added.

  

The Rs 572 crore offering of Mobikwik comprises an entire fresh issue of 20,501,792 shares. Available at a price band of Rs 265-279 per share, and a lot size of 53 shares, the issue received massive participation from investors, getting oversubscribed by a whopping 119.38 times by the end of the subscription window on Friday, December 13, 2024.

 

The basis of allotment of Mobikwik IPO shares was finalised on Monday, December 16, 2024.

 

The company proposes to utilise the net proceeds from the public offering for funding growth in the financial services business, funding growth in the payment services business, investment in data, ML, AI, product and technology. Mobikwik will also utilise the proceeds for capital expenditure for the payment devices business as well as for general corporate purposes.

 

A fintech business, Mobikwik offers online payment services and prepaid digital wallets. The business offers a variety of payment services, allowing customers to pay their utility bills, including those for credit cards and cellphone recharges, and make purchases from retailers both online and offline.