Mobikwik IPO day 3: GMP, subscription status and review. Should you apply?
Mobikwik IPO aims to raise ₹572 crore with a price range of ₹265 to ₹279 per share. The issue has seen strong investor interest, being subscribed 20.41 times by the second day. Retail investors can invest a minimum of ₹14,787 for one lot of 53 shares.
Mobikwik IPO day 3: The initial public offering (IPO) of One MobiKwik Systems is witnessing strong investor interest. The ₹572 crore book-built issue, which is entirely a fresh issue of 2.05 crore shares, opened for subscription on Wednesday, December 11, and to conclude on Friday, December 13. By the end of the second day of subscription, the mainboard IPO had already been subscribed 20.41 times.
Mobikwik IPO GMP
According to market sources, the latest grey market premium (GMP) of Mobikwik IPO is ₹158. With the issue's upper price band of ₹279, and considering the current GMP, the estimated listing price of Mobikwik shares is ₹437, a premium of nearly 57 per cent.
Mobikwik IPO subscription status
BSE data shows retail and non-institutional investors (NIIs) have lapped up the IPO. By 4:20 PM on Friday, Mobikwik IPO had been subscribed 118.72 times, receiving bids for 1,40,94,26,986 shares against 1,18,71,696 offered. The retail segment was subscribed 131.36 times, the NII segment was booked 108.73 times, and the qualified institutional buyers (QIB) segment had seen a subscription of 119.50 times.
By the end of Thursday- the second day of subscription - the issue had seen an overall subscription of 20.41 times, receiving bids for 24,23,45,574 shares against 1,18,71,696 offered. The segment reserved for retail investors had been subscribed 64.65 times, NIIs' portion was booked 30.07 times, and QIBs subscribed to the issue 0.84 times.
Mobikwik IPO details
The IPO is priced at ₹265 to ₹279 per equity share. The company aims to raise ₹572 crore from this entirely new public issue, which it intends to use to expand its business and invest in data, ML (machine learning), AI (artificial intelligence), products and technology.
Bidders can apply in lots, and one lot of the public issue will comprise 53 company shares. So, the minimum amount of investment for retail investors is ₹14,787.
SBI Capital Markets and DAM Capital Advisors have been appointed lead managers of the public issue. Link Intime India Private Limited has appointed this public offer's official registrar.
The company is expected to finalise the share allotment on Saturday, December 14. In case of any delay, the announcement of share allotment can be expected on 16 December 2024. The shares of the company may list on the BSE and the NSE on December 18.
Mobikwik IPO review
Mobikwik is a fintech company that offers prepaid digital wallets and online payment services.
As analysts of Geojit Financial Services observed, by May 2024, Mobikwik had captured a 23.11 per cent market share in the prepaid payment instruments (PPI) wallet segment by gross transaction value, making it the largest wallet provider in India. The company has a vast reach, covering 99 per cent of India's pin codes.
SBI Securities pointed out that Mobikwiky is a major player in the mobile wallet and digital lending space. It addresses a substantial untapped market of more than 40 crore individuals in India who require access to financial products but have limited or no credit history. The company has delivered a revenue CAGR of 29 per cent over FY22-24 and has turned profitable at the EBITDA and PAT level in FY24.
Should you apply?
Experts appear positive about the issue for the long term, given the IPO's reasonable valuation and the company's healthy growth prospects.
Geojit Financial Services has a subscribe rating on the issue due to its reasonable valuation.
"At the upper price band of ₹279, Mobikwik is available at m-cap-to-sales of 2.5 times (on FY24 financials), which appears to be reasonably priced. We assign a 'subscribe' rating for the issue on a long-term basis, considering its strong brand recall, diversified offerings, rapid scaling, consistent innovation, customer stickiness and promising industry outlook," said Geojit.
Bajaj Broking suggests subscribing to the issue for the long term. The brokerage firm observed that the company has a significant growth potential.
Bajaj Broking highlighted the RedSeer Report, which says presently, traditional market players usually serve the 20 - 25 million affluent and 90 - 100 million well-off individuals in the country. However, a substantial untapped market exists of more than 500 million individuals in the middle Indian population that the traditional market players do not actively address.
Among these, 120- 130 million individuals are credit active, presenting a considerable opportunity. Additionally, more than 400 million consumers are not currently engaged in credit activities but require access to financial products. Bajaj Broking observed that leveraging payment data and facilitating smaller loans enables us to establish credit histories for these individuals, thereby contributing to increased financial inclusion.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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