Shares of MobiKwik soared 88% on their debut day to give the company a market valuation of nearly Rs 40 billion. The successful $67 million IPO, oversubscribed by 120 times, clearly indicates that India is still on a booming trajectory in the area of fintech. Appended as valuation-increasing factors, Sensex and MobiKwik shares broke above Rs 500 on the BSE, raising their integrated market valuation to roughly Rs 40 billion. The stock opened at Rs 440, compared to the IPO price of Rs 279. But what drove this stellar success? And what does this mean for investors in the long term?
What Happened on MobiKwiks IPO Debut?
Key IPO Stats at a Glance
- Issue Price: Rs 279 per share
- Listing Price (NSE): Rs 440 per share (57.71% premium)
- Listing Price (BSE): Rs 442.25 per share (58.51% premium)
- Intraday High: Rs 525 per share (88% above issue price)
- Market Valuation: Rs 3,890 crore post-listing
- Subscription Rate: 119.38 times
- The overall IPO size: Rs 572 crore (new issue)
MobiKwiks IPO met with overwhelming investor interest, resulting in an over-subscription with 119.38 times over the available shares. The stock debuted on December 18, 2024, with an opening price of Rs 440 on the National Stock Exchange and Rs 442.25 on the Bombay Stock Exchange. It surged to an intraday high of Rs 525, a remarkable 88% jump from its issue price.
The market buzz surrounding MobiKwik was fueled by strong fundamentals, improved financial performance, and the booming digital payments industry in India.
Why Did MobiKwiks IPO Succeed?
1. Overwhelming Subscription Rate
MobiKwik’s public issue saw demand skyrocket to 119.38 times the available shares. Investors bid for nearly 141 crore shares, compared to the 1.18 crore shares on offer. This amount of demand demonstrates investor confidence in MobiKwik’s growth prospects.
| Metric | Value |
| Total Subscription Rate | 119.38x |
| Shares on Offer | 1.18 crore |
| Total Bids | 141 crore |
| Demand Value | Rs 39,542 crore |
2. Strong Growth in Financials
MobiKwik reported significant financial improvements in FY24:
- Payment GMV grew at a 45.9% annual rate (FY22 to FY24).
- MobiKwik ZIP GMV (Disbursements) grew by 112.2% annually.
- The company achieved profitability at both the EBITDA and PAT levels in FY24.
These robust numbers highlight the company’s ability to scale in the competitive fintech sector.
3. Growing User Base
MobiKwik ranks third among digital wallet providers in India, with 135.41 million registered users as of FY24. This extensive user base offers a strong foundation for future growth.
MobiKwik’s User Growth (FY22 to FY24)
Analyst Views on MobiKwik’s Valuation
Despite the excitement, some analysts caution that the stock is richly priced. According to Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, the IPO valuation is at 155x FY24 earnings.
Other analysts, like Abhishek Pandya from StoxBox, highlight MobiKwik’s improving financials and the industry’s tailwinds, recommending a medium-to-long-term hold.
“Given the company’s strong market presence and improved financials, we recommend holding the stock for the long term.” — Abhishek Pandya, StoxBox
How Does MobiKwik Compare to Competitors?
MobiKwik faces stiff competition from established players like Paytm, PhonePe, and Google Pay. Here’s a quick comparison:
| Metric | MobiKwik | Paytm | PhonePe |
| Registered Users (FY24) | 135.41M | 330M | 490M |
| Annual GMV Growth | 45.9% | 45% | 50% |
| Profitability | Yes (FY24) | No | No |
MobiKwik Share Competitor Comparison in Digital Payments
Should You Invest in MobiKwik for the Long Term?
Strengths of MobiKwik
- Profitable Growth: Achieved profitability at EBITDA and PAT levels.
- Expanding User Base: 135.41 million users and counting.
- Industry Tailwinds: The digital payments market in India is projected to grow from Rs 265 trillion in 2023-24 to Rs 593 trillion by 2028-29 (PwC).
Potential Risks
- High Competition: Competitors like Paytm and PhonePe have larger user bases.
- Valuation Concerns: Priced at 155x FY24 earnings.
- Market Volatility: Broader market headwinds could impact performance.
FAQs About MobiKwiks IPO
1. Why Did MobiKwiks IPO Attract So Much Interest?
The company’s strong financial performance, growing user base, and positive industry trends made it a hot pick for investors.
2. What Was the IPO Price and Listing Price?
- IPO Price: Rs 279
- NSE Listing Price: Rs 440 (57.71% premium)
- BSE Listing Price: Rs 442.25 (58.51% premium)
3. Should I Hold MobiKwik Shares Long Term?
Analysts recommend a medium-to-long-term hold, considering the company’s growth prospects and industry tailwinds.
Final Thoughts: Is MobiKwik a Good Investment?
The remarkable IPO opening of MobiKwik goes ahead in amplifying strong confidence among investors and leaving a signal as to the company’s capability in the ever-booming fintech arena. The stock is high-flying in its pricing, yet profitability, wider user base, and current industry growth trends present a strong argument favoring long-term holding.
For the IPO investors, it is wise to keep holding the shares for now. For new investors looking into entering the stock in the future, it would be better to try watching out for earnings-related news and the direction of the market trend.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
