MobiKwik shares jump over 18% after giving strong listing gains. What should investors do?
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After listing at a healthy premium of 58.5%, shares of fintech firm One MobiKwik Systems on Wednesday rallied as much as 18.5% to Rs 524 on BSE, after listing on the bourse at Rs 442.25. The shares were listed at Rs 440 on the NSE, implying a premium of 57.7% to its issue price of Rs 279. The IPO of Mobikwik received a massive response from investors with an overall subscription of 119 times at close. The Rs 572 crore IPO is completely a fresh issue of up to 2.05 crore equity shares and the proceeds will be used for growth in financial and payment services, research and development in AI and machine learning, and expansion of payment device infrastructure. The company’s recent shift to profitability, coupled with the growing adoption of digital payments, boosted market confidence, said Shivani Nyati, Head of Wealth at Swastika Investmart, adding that “however, sustaining this momentum would depend on its ability to maintain profitability ...