MobiKwik IPO subscribed 20.41 times on day 2 of issue, retail investors dominate with highest bids; Latest GMP here
- MobiKwik IPO was subscribed 20.41 times on the second day of subscription, with the portion reserved for retail investors booked the highest among the three groups of investors.
MobiKwik IPO: The mainboard initial public offering (IPO) of One Mobikwik Systems Limited received an overwhelming response from investors within two days of subscription. The ₹572-crore worth public issue of the fintech major was overbought as it hit India's primary market on December 11, 2024, to open for its three-day subscription period. The issue will close on Friday.
One Mobikwik System Ltd has reserved not less than 75 per cent of the equity shares in the public issue for the qualified institutional buyers (QIB), not more than 15 per cent for non-institutional institutional investors (NII), and not more than 10 per cent of the offer for the retail investors.
Follow Live Updates: Mobikwik IPO Day 1: Issue was subscribed 7.32 times; Check GMP, subscription status, other key details
MobiKwik IPO Subscription Status
On the second day of subscription, MobiKwik IPO was subscribed 20.41 times by the end of the session. The portion reserved for retail investors was subscribed 64.65 times, the portion reserved for QIBs was booked 84 per cent, and the portion reserved for NIIs was booked 30.07 times on the first day.
According to BSE data, the IPO received 24,23,45,574 share applications against 1,18,71,696 shares offered on Thursday. On the first day, MobiKwik IPO was subscribed over seven times. It was overbought within hours of opening.
MobiKwik IPO Latest GMP Today
According to Invstorgain.com, the latest Grey Market Premium (GMP) for the Mobikwik IPO stood at ₹156. Based on the price band of ₹279.00, the projected listing price is ₹435, calculated by adding the cap price to the current GMP. This translates to an anticipated gain of 55.91 per cent per share. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
MobiKwik IPO Details
MobiKwik Systems is poised to raise ₹572 crore through its IPO, which will consist entirely of a fresh issue of shares without an offer-for-sale (OFS) component. The issue is entirely a fresh issue of 2.05 crore shares. The price band of the issue has been fixed at ₹265 to ₹279 per equity share with a face value of ₹2. The IPO lot size is 53 equity shares and multiples of 53 equity shares thereafter.
The issue will close for bidding on December 13, 2024. The allotment for the Mobikwik IPO is expected to be finalized on Monday, December 16, 2024. After the IPO, the shares of Mobikwik will be listed on stock exchanges BSE and NSE, with a tentative listing date fixed as Wednesday, December 18, 2024.
MobiKwik IPO's book-running lead managers (BRLM) are SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly IDFC Securities Ltd). The public issue's registrar, Link Intime India Private Ltd. MobiKwik, said in its red herring prospectus (RHP) that it is one of a few unique players in the payment and financial Services sectors. As a result, no directly comparable companies in India or globally have a similar business model and size.
MobiKwik Company Details
Incorporated in March 2008, Mobikwik is a fintech company that offers prepaid digital wallets and online payment services. These services enable consumers to pay utility bills, such as mobile recharges, electricity, and credit card bills. The company's promoters are Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust.
Also Read: MobiKwik IPO: Fintech major raises ₹257 crore from anchor investors ahead of subscription
The company functions as a platform business with a robust two-sided payment network that links consumers and merchants effectively. As of June 30, 2024, we are proud to have acquired 161.03 million registered users and empowered 4.26 million merchants to facilitate payments online and offline.
MobiKwik reported a profit of ₹14.08 crore for FY24. The company's consolidated total income has risen significantly to ₹890.3 crore, reflecting a strong increase from ₹561.6 crore in FY23 and ₹543.2 crore in FY22. The company did face challenges in the previous two fiscal years, with losses of ₹128.16 crore in FY22 and ₹83.8 crore in FY23.
MobiKwik is committed to investing in data, machine learning (ML), and artificial intelligence (AI) to enhance its product and technology offerings further. Additionally, the funds will be directed towards capital expenditures for payment devices and general corporate purposes, positioning the company for significant advancement in competitive payments.
MobiKwik IPO Review
"At the upper price band of ₹279, Mobikwik is available at Mcap/sales of 2.5x (on FY24 financials), which appears 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 domestic brokerage firm Geojit Financial Services on MbiKwik IPO.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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