Mobikwik IPO GMP Rises 40%: Key Details Before Subscription - Read Now
Mobikwik IPO GMP rises 40% before the Rs 572 crore issue begins on December 11. Price band set at Rs 265-279 per share. Competes with Paytm, PhonePe, and others. Key details on subscription, listing, and grey market premium trends.
The Mobikwik IPO is creating a buzz in the primary market as the grey market premium (GMP) for its shares surged to nearly 40%. The Rs 572 crore public issue is set to open for subscription on December 11, 2024, and will close on December 13, 2024, with anchor bidding scheduled for December 10, 2024.
Mobikwik IPO GMP Highlights
The GMP for Mobikwik shares is currently hovering between Rs 111 and Rs 120, suggesting a premium of around 40% over the upper price band of Rs 279 per share. This robust grey market performance signals strong investor interest ahead of the IPO.
The price band for the IPO has been set at Rs 265-279 per equity share.
Mobikwik’s Journey to the IPO Market
This is Mobikwik’s second attempt at going public after its July 2021 IPO plans were shelved due to unfavorable market conditions. Initially aiming for a Rs 700-crore IPO, the company revised its offering to Rs 572 crore.
Company Background
Founded by Bipin Preet Singh and Upasana Taku, Mobikwik operates as a digital financial services platform offering payment solutions, digital credit, investments, and insurance. The company has garnered backing from prominent investors such as Peak XV and ADIA.
Competitive Landscape
Mobikwik operates in a highly competitive market alongside industry giants like:
- Paytm
- PhonePe
- Airtel Payments Bank
- Freecharge
Despite stiff competition, Mobikwik has carved a niche in digital credit and financial services, setting itself apart from traditional payment platforms.
IPO Subscription Details
- Open Date: December 11, 2024
- Close Date: December 13, 2024
- Anchor Investor Bidding: December 10, 2024
- Price Band: Rs 265-279 per equity share
Investors are keenly watching the IPO, which aims to capitalize on the growing digital payments ecosystem in India.
Grey Market Premium (GMP) Trends
Market observers tracking IPOs on platforms like IPO Watch and Investorgain report that Mobikwik shares are commanding a GMP of Rs 111-120. If this trend continues, the shares could list at a significant premium.
Mobikwik’s Financials and Growth
Mobikwik has established itself as a leader in the digital payments space, focusing on integrating financial products with its payment solutions. While facing competition, the company’s innovative offerings like digital credit services have helped it maintain steady growth.
Key Drivers of Mobikwik IPO Interest
- GMP Surge: A 40% rise in GMP reflects strong investor demand.
- Reduced IPO Size: A trimmed IPO size of Rs 572 crore increases the chances of a successful subscription.
- Market Positioning: Focus on digital credit and financial services differentiates Mobikwik from competitors.
- Backed by Reputed Investors: Support from Peak XV and ADIA boosts investor confidence.
Despite the optimism, Mobikwik faces challenges:
- Competition from Industry Giants: Heavyweights like Paytm and PhonePe dominate the market.
- Profitability Concerns: Sustained growth in a competitive sector will require significant investments.
- Regulatory Risks: Compliance with evolving regulations in the fintech space adds to the operational challenges.
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