MobiKwik Puts Off its Rs.1,900 crore IPO After Paytm Scare

MobiKwik Puts Off its Rs.1,900 crore IPO After Paytm Scare

by 5paisa Research Team Last Updated: Dec 10, 2022 - 04:31 pm 45.8k Views
Listen icon

The weak listing of the Paytm IPO may have had its first casualty in the form of a digital IPO being put off. MobiKwik has put off its proposed Rs.1,900 crore IPO on the back of weak Paytm listing.

MobiKwik has been apprehensive that the post listing performance of Paytm would impact the valuations of digital IPOs and also post listing performance. Hence, MobiKwik has decided to put off its IPO plans till further notice.

It must be remembered that the DRHP filed by MobiKwik with SEBI had already been approved. Technically, MobiKwik was all set to go ahead with the IPO. MobiKwik is into the Buy Now Pay Later (BNPL) segment and wallet business and its business model broadly corresponds with that of Paytm.

It is anticipated that the performance of Paytm post listing may have created apprehensions about the response of retail, HNI and QIB investors.

Check - Paytm IPO - Listing Day 1 Performance

First, a bit of the Paytm story. The IPO was priced at the upper end of the price band of Rs.2,150 per share despite the subscription being a nominal 1.89 times. On 18th November, when Paytm listed, it opened weak but consistently lost value to close nearly 27% below the IPO price.

By the close of trading on 22nd November, Paytm touched a low of Rs.1,271 but bounced to close on 22-Nov almost 36% below the IPO price.

However, the stock has rebounded in the next couple of days. Between 23-Nov and 24-Nov Paytm recovered nearly 34% from the lows to scale above Rs.1,700. It is still well below the IPO price of Rs.2,150, but the recovery has been sharp and encouraging.

In this light, the decision by MobiKwik to postpone the public issue may appear to have been taken in haste. After all, the interest in digital IPOs continues to persist.

While time lines are not mentioned, the founder of MobiKwik has indicated that they may look to postpone the IPO by 2-3 months. MobiKwik was seeking valuation of $1 billion through the IPO and apparently, it also has second thoughts on the same. MobiKwik counts among its investors marquee names like Sequoia, Bajaj Finance, American Express and Bennett Coleman.

While both Paytm and MobiKwik are in the wallet and BNPL business, Paytm is a much larger ecosystem with over 33 crore customers and over 2.2 crore merchants.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Market Outlook for 4th March to 8th March

In the week gone by, Nifty traded with higher volatility as the index corrected during mid-week upto 21860, but it then witnessed a smart recovery to register new record high and the index ended the week just below 22400 with weekly gains of three-fourth of a percent.

Best EV Stocks in India 2024

As India shifts to a greener future, the electrically powered cars and trucks market will rise significantly in 2024. This article investigates the best EV stocks in India, highlighting firms leading the way in innovation, sustainability, and market capitalization.

Best Banks in India 2024

Navigating the many options for banking services becomes a crucial task for both individuals and enterprises as we enter the Indian financial scene in 2024. The top banks in India provide a wide range of services that extend beyond traditional banking, serving as cornerstones of the country's financial stability. These best banks in India offer individualized client care and state-of-the-art digital solutions that reflect the changing needs of the financial industry.