MobiKwik IPO opens for subscription, fully subscribed within hour of launch

The ₹572-crore IPO is available for subscription till Friday.

The ₹572-crore initial public offering (IPO) of One MobiKwik Systems was fully subscribed within an hour of the issue's opening on Wednesday.

MobiKwik previously attempted an IPO in July 2021. (Representational Photo)

According to data available (until 11:40am) with the National Stock Exchange, the initial share sale received bids for 2,16,17,852 shares, while the fintech company has offered total 1,18,71,696 shares.

The issue was subscribed 7.69 times by Retail Individual Investors, and the Non-Institutional Investors portion received a subscription of 1.55 times. Investors can subscribe to the IPO till Friday.

One Mobikwik Systems raised ₹257 crore from anchor investors on the eve of the IPO, the company said.

The public issue is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component, while the price band has been fixed at ₹265-279 per share.

The Gurugram-based firm will use the proceeds for organic growth in its financial services business, expanding its payment services, research and development in artificial intelligence; machine learning, technology, and capital expenditure on payment devices.

Mobikwik, its flagship application, gives consumers access to various payment options and financial products in digital credit, investments, and insurance.

Also, this the second attempt by One Mobikwik Systems for a public issue following the earlier one in July 2021. However, in November of the year, it shelved its plans and withdrew its draft papers due to “unfavourable market conditions.”

For the current IPO, the company, founded by Bipin Preet Singh and Upasana Taku, refiled the draft papers in January.

(With PTI inputs)