The Mobikwik IPO has opened for subscription, generating significant interest among investors. This fintech company aims to raise ₹572 crore through its public issue, offering equity shares at a price band of ₹265 to ₹279 per share. With a robust business model and promising growth potential, Mobikwik is making waves in the financial and tech sectors. Here’s an in-depth analysis of its IPO, covering everything from subscription status to expert reviews.
Key Highlights of Mobikwik IPO
| Parameter | Details |
|---|---|
| IPO Name | Mobikwik IPO |
| Issuer | One Mobikwik Systems Limited |
| IPO Size | ₹572 crore (Fresh Issue) |
| Price Band | ₹265 to ₹279 per equity share |
| Lot Size | 53 shares per lot |
| Market Lot Price | ₹14,045 to ₹14,787 (per lot) |
| Issue Type | Book Build Issue |
| Subscription Dates | 11 December 2024 to 13 December 2024 |
| Allotment Date | Likely on 14 December 2024 (may extend to 16 December 2024 if delayed) |
| IPO Listing Date | Expected on 18 December 2024 |
| Registrar | Link Intime India Private Limited |
| Lead Managers | SBI Capital Markets, DAM Capital Advisors |
| Proposed Listing | NSE and BSE |
| Grey Market Premium (GMP) | ₹136 (suggests a 48.75% listing gain at ₹415) |
| Market Capitalization Post-IPO | ₹2295.45 crore |
Subscription Status on Day 1 (as of 11:29 AM, 11 December 2024)
- Retail Investors: Subscribed 7.91 times
- Qualified Institutional Buyers (QIB): No subscriptions yet
- Non-Institutional Investors (NII): Subscribed 1.56 times
- Total Subscription: 1.86 times
The high subscription rate in the retail category indicates strong interest from individual investors. Institutional buyers are expected to join the bidding process as the IPO progresses.
Business Overview and Financial Highlights
Mobikwik is a digital payments and financial services platform offering features like mobile recharges, bill payments, UPI-based transactions, and money transfers. The company also operates a credit service, “MobiKwik ZIP,” which has seen significant growth in recent years.
- Revenue Growth: Recorded a 59% YoY growth in FY24.
- Profit After Tax (PAT): Achieved a 117% YoY increase, becoming profitable at the EBITDA and PAT levels in FY24.
- GMV Growth: Payment GMV grew at an annual rate of 45.9%, while ZIP GMV surged by 112.2% between FY22 and FY24.
- EBITDA Margin: Improved from -21.24% in FY22 to 4.18% in FY24.
The company’s financial health highlights its operational efficiency and growth trajectory, making it a promising prospect for long-term investors.
Mobikwik IPO Grey Market Premium (GMP)
As of today, Mobikwik shares are trading at a ₹136 premium in the grey market. This indicates a potential listing price of approximately ₹415, offering a 48.75% listing gain over the upper price band of ₹279.
Expert Reviews: Should You Apply?
Positive Sentiments
- VLA Ambala, Co-founder of Stock Market Today, recommends subscribing to the IPO, citing the company’s impressive revenue growth and strategic use of IPO proceeds to expand its financial services and technology infrastructure.
- BP Equities has given a “Subscribe” rating, highlighting Mobikwik’s strong market presence, innovative digital payment solutions, and the rapid growth of India’s digital payments sector.
Cautions
- The IPO’s P/E ratio of 113x on FY24 earnings is considered high, which makes the valuation expensive.
- Rising borrowings could be a concern, though the company has shown improved financial discipline in recent years.
Why Consider Mobikwik IPO?
- Growing Market Opportunity: India’s digital payments market is projected to grow at a 22% CAGR from FY24 to FY28, driven by increasing smartphone penetration and financial inclusion.
- Strong Financial Performance: Mobikwik’s profitability at both EBITDA and PAT levels underscores its operational efficiency.
- Promising Listing Gains: The grey market premium suggests a nearly 49% gain on listing day.
Final Verdict
Investors with a moderate to high risk appetite can consider applying for the Mobikwik IPO. The company’s strong revenue growth, profitability, and position in a rapidly growing market make it an attractive opportunity. However, those wary of high valuations should tread cautiously and consult a financial advisor.
Disclaimer: Investment decisions should be made after consulting certified experts and considering individual risk tolerance. The above views are based on market trends and analyst opinions.
