Moneyview shares rally 93% from IPO price in 7 sessions. What lies ahead?

Shares of Moneyview jumped around 5% on Monday to hit a fresh record high, adding around Rs 1,835 crore to its market capitalisation in just seven trading sessions since its stock market debut.

Moneyview shares jumped to Rs 65.47 apiece on the NSE, marking a nearly 93% gain over the IPO price of Rs 34 apiece. The shares listed at Rs 55 apiece on the NSE on October 1, a premium of nearly 62% over the IPO price.

Monday’s record high marked a nearly 19% jump from the listing price of Rs 55 apiece on the NSE. The company’s market capitalisation currently stands at over Rs 11,472 crore.

Moneyview IPO

The rally comes after Moneyview’s Rs 1,092 crore initial public offering (IPO) attracted strong investor interest during its three days of bidding, with the issue subscribed around 102 times overall between September 24 and September 28.

The IPO comprised a fresh issue of shares worth Rs 750 crore and an offer for sale (OFS) of 10.05 crore equity shares valued at Rs 342 crore at the upper end of the issue price band. Promoters Puneet Agarwal and Sanjay Aggarwal were set to sell up to 1.35 crore shares each, while Accel, Tiger Global and Ribbit Capital were also selling stakes.

Moneyview, formerly known as Whizdm Innovations, offers users a suite of financial products through a network of banks, non-bank lenders, insurers and other financial institutions.

Also read | Moneyview shares skyrocket from IPO price after strong market debut. Should you buy, sell or hold?

What lies ahead for Moneyview’s share price?

Moneyview, incorporated in 2014, is a consumer-focused, digital-only, credit-led financial services platform that provides a suite of financial products through a network of financial partners, including its NBFC subsidiary, via the Moneyview mobile application, said Ravi Singh, Chief Research Officer at Master Capital Services.

Its platform is a two-sided network that connects users seeking financial products with banks, NBFCs, insurers and other financial institutions offering such products. The key factor to track will be whether the company can sustain growth in revenue, loan disbursals and managed assets while maintaining profitability and asset quality, Singh said.

“Long-term investors may continue to track the company’s underlying digital lending and financial services business, supported by increasing adoption of digital credit and its expanding financial product offerings,” he said.

Rather than focusing only on its listing-day performance, investors may monitor quarterly revenue growth, loan disbursals, managed assets under management (AUM), margins, asset quality and operating cash flow, according to the analyst.

Also read | Can Moneyview IPO deliver long-term growth for high-risk investors?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.