Peak XV Partners Sells Rs 81.63 Crore Stake in Mobikwik Following IPO

- Aishwarya Bhatt  December 29, 2024

Peak XV Partners Investment Holdings III sold a 1.54% stake in One Mobikwik Systems through open market transactions on Thursday for Rs 81.63 crore. The venture capital firm, formerly known as Sequoia Capital India and SEA, sold 12.01 lakh shares at Rs 679.38 per share.

Surprisingly, the stake sale comes shortly after Mobikwik's successful market debut. It ought to be noted that the company's shares opened at Rs 440 on the National Stock Exchange, marking a hefty premium of 57.71%. On the other hand, on the BSE, they began trading at Rs 442.25, a 58.51% premium. Since its listing, the stock has risen 20.96%.

According to BSE data, Peak XV Partners held a 2.81% stake in Mobikwik as of December 16, down from the 3.67% reported in the company's Red Herring Documents on December 6. Following Thursday's trading session, Mobikwik's shares closed 4.89% higher at Rs 82.04 after reaching an intraday high of Rs 698.30.

MobiKwik IPO, which closed on December 13, saw strong investor interest with 119.38 times subscription, primarily driven by qualified institutional buyers. The IPO consisted of a fresh issue of shares worth Rs 572 crore. Mobikwik has concrete plans for the funds that they raised with the IPO. They will use Rs 150 crore for organic growth in financial services. In contrast, Rs 135 crore is earmarked for payment services, and Rs 107 crore will be utilized for research and development in data, machine learning, and artificial intelligence.

Current market sentiment appears favorable, with five out of ten analysts maintaining a 'buy' rating on the stock, while one recommends 'hold' and four suggest 'sell.' The average 12-month consensus price target indicates a potential upside of 17%.