As MobiKwik prepares for its stock market debut today, December 18, 2024, investors are eagerly awaiting the performance of the fintech company’s shares. The Initial Public Offering (IPO) has generated exceptional interest, underscored by an oversubscription rate of nearly 120 times, reflecting robust demand from investors.
IPO Overview and Subscription Details
MobiKwik’s IPO aimed to raise ₹572 crore through a fresh issue of shares. The offering was priced within a range of ₹265 to ₹279 per share and saw bids worth approximately ₹40,000 crore during the subscription period from December 11 to December 13, 2024. This overwhelming response highlights the confidence investors have in MobiKwik’s growth potential within the fintech sector.
Current Grey Market Premium (GMP)
As of today, MobiKwik’s grey market premium is reported at around ₹165 or 59%, indicating strong investor sentiment ahead of the listing. This suggests that shares could debut at approximately ₹444, representing a substantial potential gain for those who received allotments during the IPO. The GMP reflects the market’s optimism regarding MobiKwik’s future performance and growth trajectory.
Share Price Expectations
Given the current GMP trends, MobiKwik shares are expected to list around ₹444 per share. This price reflects a significant potential return of nearly 60% for investors who were allotted shares during the IPO. However, it is essential to note that GMP trends are based on unregulated grey market activity and may not always accurately predict actual listing performance.
Important Dates and Listing Information
- IPO Open Date: December 11, 2024
- IPO Close Date: December 13, 2024
- Allotment Date: December 16, 2024
- Listing Date: December 18, 2024
- Price Band: ₹265 – ₹279 per share
MobiKwik will be listed on both the BSE and NSE under the ‘B’ Group of Securities starting today at 10:00 IST.
What Experts Are Saying
Experts have provided varied insights regarding MobiKwik’s stock performance post-listing:
- Positive Outlook: Gaurav Garg, Research Analyst at Lemonn Markets Desk, noted that the overwhelming subscription reflects strong investor optimism. He emphasized that the retail segment saw an impressive subscription rate of 141.78 times, indicating high demand among individual investors.
- Long-Term Investment Potential: Narendra Solanki from Anand Rathi Shares expressed a “Subscribe – Long Term” rating for MobiKwik’s IPO. He acknowledged the company’s high valuation at 155 times its FY24 earnings but justified it by highlighting the strong growth potential in the fintech space.
- Hold Recommendations: Abhishek Pandya from StoxBox recommended that investors consider holding their shares for medium to long-term gains. He pointed out that MobiKwik turned profitable at both EBITDA and PAT levels in FY24, signaling improving financial health.
Should You Buy or Hold?
Investors are faced with a crucial decision as MobiKwik prepares for its market debut today:
- Buy: If you did not receive an allotment in the IPO but are interested in investing in MobiKwik, consider buying shares on dips post-listing. The company’s fundamentals and growth potential make it an attractive option for long-term investors.
- Hold: For those who received shares during the IPO, holding onto them could be beneficial given the company’s promising outlook and growth strategy focused on cost efficiency and customer satisfaction.
Conclusion
As MobiKwik makes its much-anticipated debut on the stock market today, investor sentiment appears overwhelmingly positive. With strong subscription numbers and a healthy grey market premium indicating potential gains, both short-term traders and long-term investors should closely monitor market movements and expert recommendations.
Disclaimer
The views expressed by analysts are their own and do not necessarily reflect those of Moneycontrol or its management. Investors are encouraged to conduct their own research or consult with certified financial advisors before making investment decisions based on this information. The stock market carries inherent risks, and past performance is not indicative of future results.
