MobiKwik’s shares soared 85% on their trading debut on Wednesday, rising above Rs 500 on the BSE, boosting the company’s valuation to around Rs 40 billion. The stock opened at Rs 440, a sharp rise from its IPO price of Rs 279.
The company’s $67 million IPO garnered major interest, with subscriptions exceeding available shares by 120 times. This made it one of the most heavily oversubscribed offerings in recent months.
MobiKwik’s success comes amid rapid growth in the digital payments market, which industry experts project will expand from transaction values of 265 trillion rupees in 2023-24 to 593 trillion rupees by 2028-29, according to PwC. With established players like Paytm, PhonePe, and Google Pay leading the sector, MobiKwik’s impressive debut signals its growing prominence in this competitive landscape.
The fintech boom aligns with a broader surge in IPO activity in India. Over 300 companies have raised $17.5 billion in funding this year, more than doubling the capital raised during the same period in 2023.
Despite MobiKwik’s stellar performance, the broader Indian market faced headwinds on Wednesday. Benchmark indices Sensex and Nifty declined in early trade, weighed down by foreign fund outflows and cautious sentiment ahead of the US Federal Reserve’s interest rate decision. The Sensex dipped 149.31 points to 80,535.14, while the Nifty fell 62.9 points to 24,273.10. Major laggards included Tata Motors, Power Grid, and Adani Ports, while Reliance Industries and HCL Technologies were among the gainers.
Market analysts highlighted concerns over foreign institutional investor (FII) activity, with FIIs selling equities worth Rs 6,409.86 crore on Tuesday.