NEW DELHI: The initial oublic offer (IPO) of fintech firm One Mobikwik Systems saw a strong participation from investors as the issue was fully subscribed in less than 90 minutes of opening on Wednesday. At the end of first day’s bidding hours, the issue got subscribed 7.31 times.
The Rs 8,000 crore IPO of supermarket chain Vishal Mega Mart saw 51% subscription at the end of the first day of bidding. The company already raised Rs 2,400 crore from anchor investors ahead of the IPO opening. The two IPOs will close for subscription on Friday, December 13.
The strong subscription for Mobikwik’s IPO comes amid a strong demand for its unlisted shares. Last checked, these shares were trading at Rs 415, reflecting a grey market premium (GMP) of Rs 136 or 48.75% over the upper end of the IPO price band of Rs 279.
The IPO, a book-built issue of Rs 572 crore, is available in a price band of Rs 265–Rs 279 per share. On Tuesday, it garnered Rs 257 crore from anchor investors. On day 1 of bidding, it received bids for 8.67 crore shares against 1.18 crore shares on offer. Retail individual investors (RIIs) showed strong interest as there quota got subscribed 26.69 times. The portion for non-institutional investors (NII) category received 8.97x subscription.
Most analysts have suggested investors to consider applying for the two IPOs as the firms have shown improvement in their financials. Anand Rathi Research had recommended subscribing to the IPO with a long-term perspective, citing rich valuations. At the upper band, it is valued at 15.5x its FY24 earnings.