Quick Bucks! Mobikwik stock delivers multibagger returns to allottees in just two days of listing

Multibagger stock: Mobikwik share price extended its gains for a second straight day of listing, bucking the sluggish market trend.

The newly listed stock surged 14% on Thursday, December 19, to a new high of ₹605, following a 90% jump on Wednesday. With today’s gains, the stock has risen by 116.8% from its issue price of ₹279, delivering multibagger returns to IPO allottees in just two days.

The stock listed at ₹442.25 on the BSE, marking a 58.5% increase from its issue price. During the session, it soared to ₹530.70 to finally close at ₹530.30, reflecting a 90.07% gain compared to its issue price.

Mobikwik IPO Details

The strong gains in the stock come on the back of solid demand for the IPO. The ₹572 crore public offer of Mobikwik garnered a whopping 125.69 times bids at the end of the final day of subscription. The issue received bids for 1,41,72,86,992 shares as against 1.18 crore shares on the offer.

The portion reserved for retail investors was subscribed 141.78 times, the quota reserved for qualified institutional buyers (QIB) was booked 125.82 times, and the portion reserved for non-institutional investors (NII) was booked 114.7 times.

Analysts attribute the high demand for the public offer to the company's recent shift to profitability, coupled with the growing adoption of digital payments. However, they believe the sustainability of this momentum hinges on the company's ability to maintain profitability and carve out its niche in the competitive fintech sector.

About Mobikwik

Mobikwik is a fintech company that offers digital wallet and online payment services. It provides a variety of payment solutions that allow consumers to pay utility bills, including mobile recharges, shop at online and physical stores, transfer funds and check bank account balances. Mobikwik also offers services to use QR codes to make payments via UPI or credit cards.

For the financial year ended March 31, 2024, the company posted a 59 per cent year-on-year (YoY) increase in revenue while its profit after tax witnessed a 117 per cent growth.

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