RETHINKING IPO STRATEGY: MOBIKWIK’S SUCCESSFUL IPO LAUNCH IN THE INDIAN STOCK MARKET

Abstract

Paytm's initial public offering (IPO) failed due to overvaluation, lack of profitability, intense competition in the fintech sector, timing, and regulatory obstacles. When MobiKwik filed a draft prospectus in 2021 in an attempt to raise ₹1,900 crore for its IPO, it chose to postpone its IPO because of the general belief that Paytm's IPO was a flop, but successfully launched an IPO of ₹572 crore in December 2024. The offering was oversubscribed by over 120 times, and the shares were first offered at a 58% premium. This study aims to determine the factors contributing to MobiKwik's successful IPO launch in 2024 and the causes behind its 2021 IPO postponement. The authors used charts and graphs to analyze MobiKwik's performance using secondary data from its annual reports. The study found that gaining investors' trust is the most crucial element of a successful IPO, and it is essential to assess profitability before launching an IPO, choose a better debut date, and avoid overvaluing.