The IPO of One Mobikwik Systems, a fintech company, was listed today (Wednesday) on the stock market.
The shares had a strong opening on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
On BSE, the shares opened 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.
The stock saw impressive growth after listing, reaching a high of Rs 524.90 during the day, offering investors an 88% profit on the first day.
Investor Response and IPO Details
The IPO was open for investment from December 11 to December 13 and gained significant attention.
According to NSE data, the IPO received bids for 1,41,72,65,686 shares, much higher than the 1,18,71,696 shares available.
The IPO was oversubscribed across all categories:
1) The retail investor portion was subscribed 134.67 times.
2) The qualified institutional buyers (QIBs) portion was subscribed 119.50 times.
3) The non-institutional investors category was subscribed 108.95 times.
The company raised Rs 257 crore from anchor investors, with the IPO price set between Rs 265 and Rs 279 per share. It was an entirely new issue, with no sale offer.
Utilization of Funds from the IPO
The funds raised will be used for various purposes. Up to Rs 150 crore will support the company’s growth in financial services.
Rs 135 crore will be allocated to expanding payment services, while 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 used for capital expenditure on payment devices and general corporate needs.
Delayed IPO Launch
This is the second attempt by the Gurugram-based company to launch an IPO.
Initially, the company had planned to launch the IPO in July 2021, but it was postponed due to unfavorable market conditions.
Later, the company withdrew the draft documents before resubmitting them for the recent launch.
