The IPO of One Mobikwik Systems, a fintech company, was listed today (Wednesday) on the stock market. The company’s shares had a strong opening on both the Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE). On BSE, the shares were listed at Rs 442.25, a 59% premium over the IPO price of Rs 279. On NSE, they were listed at Rs 449, giving a 61% premium.
After the listing, the stock saw impressive growth, reaching a high of Rs 524.90 during the day, giving investors an 88% profit on the first day.
IPO Details and Investor Response
The IPO was open for investment from December 11 to December 13 and was highly popular. According to data from NSE, the IPO received bids for 1,41,72,65,686 shares, much higher than the 1,18,71,696 shares available.
The retail investor portion was subscribed 134.67 times, the qualified institutional buyers (QIBs) portion was subscribed 119.50 times, and the non-institutional investors category was subscribed 108.95 times.
The company raised Rs 257 crore from anchor investors. The IPO price was set between Rs 265 and Rs 279 per share, and it was an entirely new issue with no sale offer.
How the Money from IPO Will Be Used
The funds raised from the IPO will be used for various purposes. Up to Rs 150 crore will go towards the company’s organic growth in financial services. Rs 135 crore will be used for growth in payment services.
Rs 107 crore will be invested in research and development in areas like data, machine learning, artificial intelligence, and technology.
Additionally, Rs 70.28 crore will be spent on capital expenditure for payment devices and general corporate needs.
Earlier Delay in IPO Launch
This is the second time the Gurugram-based company has tried to launch an IPO.
Initially, it planned to launch the IPO in July 2021 but had to postpone it due to unfavorable market conditions and later withdrew the draft documents.