Mobikwik IPO: Date, Price, GMP And Valuation

Mobikwik IPO-Complete Overview 

Mobikwik IPO a Mainboard IPO is a book-built issue of Rs.572 crore (2.05 Cr Shares) by One Mobikwik Systems Limited which was founded in March 2008. It is a fintech company that offers prepaid digital wallets and online services for payments.

It enables customers to:

• Be able to pay their utility bills, including mobile recharge, electricity, and credit card bills.

• Do online and offline shopping with merchants, including physical stores and gas stations.

• Transfer money to phone numbers, UPI IDs, or bank accounts.

• Check bank balances.

• Scan QR codes and make payments using UPI or Rupay credit cards.

The company has built unique products like MobiKwik ZIP, ZIP EMI for consumers, and Merchant Cash Advance for the merchant. These are made through in-house models and strategic partnerships with lending partners. These offerings are DPI (Digital Public Infrastructure) based services such as Aadhaar, E-Nach, Digi-Locker, and NSDL that provide seamless and digital-first experiences for consumers.

As of June 30, 2024, the company has over 161.03 million registered users, having also enabled about 4.26 million merchants to make and receive payments online and offline.

The company's product range includes the following:

Detailed Video

 

Online Checkout for E-commerce Merchants: Merchant interface to accept payment through all major modes such as UPI, wallets, cards, and pay-later options.

Scan and Pay with Kwik QRs: This feature allows retail merchant partners to accept payment from any merchant or user with the option of UPI, wallets, cards, or pay-later using a QR code.

MobiKwik Vibe (Soundbox): An announcement device through which merchants will confirm payments through QR-based download and can improve customer experience.

MobiKwik EDC Machine: Point of sale where merchants can accept all in-person payment modes, including credit cards, debit cards, and UPI.

Merchant Cash Advance: Propel flagship credit products that make credit cheaper and easier.

This new IPO is to be launched on 11 December 2024, and the initial public offering of this upcoming IPO will end on 13 December 2024.

 

Mobikwik IPO Details

The Rs.572 crore One Mobikwik Systems Limited IPO comprises a combination of a fresh issue of 2.05 Cr Shares. The IPO listing date is on December 18, 2024. MobiKwik IPO Share price is Rs.265 to Rs.279.

If you want to apply for the IPO, Click Here to open a Demat Account

 

Company Financial

The company’s revenue grew by 59% and PAT increased by 117% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in millions)

 

Revenue Bifurcation

(Values in millions)

The Objective of the Issue

• financing expansion in the financial services industry.

• financing expansion in the payment services industry.

• Investment in products, technology, ML, AI, and data.

• Investment in capital for the payment device industry.

• General Corporate Purposes.
  
  

Peers of Mobikwik Limited

 

Evaluation

The Mobikwik Share price is between Rs.265 to Rs.279 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.46 from the last year, the resulting P/E ratio is 113.41x. 

Considering the weighted EPS of Rs.-7.50 for the last three years, the P/E ratio is NA.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 95.33x.

IPO's Strengths 

• Enabling journeys through the organization's legacy of creating a positive and sustainable consumer experience.

• Effective operational management of loan products distributed by them.

• The trust towards them.

• Technology and product first approach to business.

 

IPO’s Weaknesses 

• Profitability Issues: Mobikwik has reported losses in prior years, and whether it can generate sustained profitability remains to be seen.

• Tough Competition: PhonePe, Paytm, and Google Pay are just a few of the large companies that govern India's booming digital payments market. This can cause Mobikwik's margins and shares to decline.

• Regulatory risks: Like any fintech, Mobikwik faces challenges from several regulators and compliance issues.

•  A shift in the regulatory machinery could affect the operational parameters of the company.

• Depend on External Funding: Mobikwik primarily relies on the funds received externally at different levels of expansion, and invades ambitions for growth in case of non-easy access to funding sources. 

 

Mobikwik IPO GMP

Mobikwik IPO GMP today has not started yet as of 06 December 2024. 

Mobikwik IPO Timetable (Tentative)

The IPO date is from 11 December to 13 December, with IPO allotment on 16 December, and refund initiation on 17 December. The IPO listing date is on 18 December 2024.

 

Mobikwik IPO Other Details 

Mobikwik IPO with a face value of Rs.2 per Share offers a total issue size of 20,501,792 shares (Rs.572 Cr) and it will be listed at BSE and NSE.

Mobikwik IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (53 Shares) amounting to Rs.14,787 and 13 Lots (689 Shares) amounting to Rs.1,92,231 respectively, while for HNI investors, the minimum Lot is 14 (742 Shares) amounting to Rs.2,07,018.

IPO Reservation

Promoters and Management of Mobikwik Ltd. 

• Bipin Preet Singh

• Upasana Rupkrishan Taku

• Koshur Family Trust

• Narinder Singh Family Trust
  
  

IPO Lead Managers

• SBI Capital Markets Limited 

• Dam Capital Advisors Ltd. (Formerly IDFC Securities Ltd.).
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

Analyzing the Mobikwik IPO would get an individual the opportunity to invest in a very promising fast-growing fintech company, which has the potential to revolutionize the digital payments space. Research into performance needs to be undertaken towards losses in the previous years, tough competition, and the various risks posed by regulations. Strong points, however, include innovative products and an ever-increasing customer base. One must weigh the risks and benefits very carefully before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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