Investors Bet Big on MobiKwik's IPO

India's MobiKwik has seen an overwhelming response to its $67 million initial public offering, with bids reaching approximately $4.7 billion. This reflects investor confidence in the fintech company's growth potential and anticipated listing gains within the rapidly expanding online payments market.

The IPO, which was fully subscribed within an hour of opening, received bids for 1.4 billion shares compared to the 11.9 million shares on offer. This marks the heaviest subscription since late September, when the domestic stock market began to ease from its record highs.

Supported by India's Bajaj Finance and Abu Dhabi Investment Authority (ADIA), MobiKwik had previously postponed its public plans in 2021 due to Paytm's underwhelming debut. However, the current enthusiasm for MobiKwik's IPO suggests a renewed investor appetite for fintech stocks.

Shares reserved for retail investors were oversubscribed 135 times, while institutional buyers placed bids 120 times their reserved shares. Analysts note that MobiKwik's stock is trading at a 50% premium in the grey market, indicating strong potential for listing day gains. The stock is expected to start trading on December 18.