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MobiKwik IPO Oversubscribed Within Hours; Retail Investors Lead the Surge

MobiKwik IPO oversubscribed 5x within hours; retail investors dominate subscription demand
MobiKwik IPO

New Delhi: Shares of One MobiKwik Systems were fully subscribed within the first hour of its opening on Wednesday, as market participants rushed to bag them in their portfolios.

At the time of filing this report, publicly available data showed that the subscription is around five times the shares on offer. Particularly the retail investors made a beeline to subscribe to the shares.

Payments solution company One MobiKwik Systems has fixed the price band of Rs 265 to Rs 279 for its maiden initial public offering.

The company's Initial Public Offering that opened for subscription today will close on Friday. Investors can bid for a minimum of 53 shares and in multiples of 53 thereafter.

The IPO is entirely a fresh issue of up to Rs 572 crore and with no offer of sale component.

The proceeds from its fresh issuance will be utilized to the extent of Rs 150 crore for funding organic growth in its financial services business; Rs 135 crore for funding organic growth in its payment services business; Rs 107 crore for Research and development ("R&D") investment in data, ML and AI and product and technology; Rs 70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.

One MobiKwik Systems, founded by Bipin Preet Singh and Upasana Taku, primarily with key businesses consisting of payment services and financial services.

As of June 30, 2024, the platform is said to have acquired 161.03 million registered users and enabled 4.26 million merchants to transact both online and offline.

Taking opportunities in India's booming stock market, many companies intended to list their shares, and a sizable number of them have made handsome gains.

Initial public offering (IPO) refers to the process where companies sell their shares to the public to raise equity capital from the investors.

Fundraising via initial public offerings (IPO) in India is set for another landmark year this 2024, asserted S&P Global Market Intelligence in a report. Economic growth, favorable market conditions and improvements in the regulatory framework helped companies raise record amounts in 2024, the financial information and analytics firm said in its analysis last week. (ANI)

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