Mobikwik IPO: Date, Price, GMP

The Mobikwik IPO is set to hit the market with a book-built issue of Rs. 572 crore (offering 2.05 crore shares) from One Mobikwik Systems Limited, a leading fintech company founded in March 2008. Mobikwik specializes in prepaid digital wallets and online payment services, enabling customers to:

• Pay utility bills such as mobile recharge, electricity, and credit card bills.

• Shop online and offline, including at physical stores and gas stations.

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

• Check bank balances and scan QR codes for seamless payments via UPI or Rupay credit cards.

Key Highlights of Mobikwik IPO

The Mobikwik IPO offers a unique opportunity to invest in one of India’s fastest-growing fintech platforms. The company’s innovative products like MobiKwik ZIP, ZIP EMI, and Merchant Cash Advance are poised to enhance digital payment experiences across India.

• IPO Opening Date: 11 December 2024

• IPO Closing Date: 13 December 2024

• Issue Price: Rs. 265 to Rs. 279 per share

• IPO Listing Date: 18 December 2024

• Total Issue Size: Rs. 572 crore (2.05 crore shares)

The funds raised through this IPO will be directed towards expanding the financial services, payment services, technology, machine learning (ML), artificial intelligence (AI), and capital for payment devices.

Company Overview

As of June 2024, Mobikwik boasts over 161 million registered users and has empowered over 4.26 million merchants with online and offline payment capabilities. Some of the standout features include:

• MobiKwik Vibe (Soundbox) for merchants to confirm payments.

• MobiKwik EDC Machine to accept in-person payments via credit cards, debit cards, and UPI.

Financial Overview

Mobikwik has shown significant growth with a 59% increase in revenue and a 117% rise in PAT between FYs 2023-2024.

Period

Total Revenue (Rs. Crore)

PAT (Rs. Crore)

Net Worth (Rs. Crore)

June 2024

345.83

-6.62

216.54

March 2024

890.32

14.08

142.69

March 2023

561.12

-83.81

162.59

Key IPO Details:

• Face Value: Rs. 2 per share

• Lot Size: 53 shares (retail)

• Institutional Share Portion: 75%

• Retail Share Portion: 10%

• Non-Institutional Share Portion: 15%

The Mobikwik IPO is listed on both BSE and NSE, making it accessible to a wide range of investors.

Investment Considerations

• Strengths: Mobikwik has strong customer trust, innovative product offerings, and a tech-first approach to business. The company has seen growth due to its focus on digital payment solutions.

• Weaknesses: Mobikwik faces stiff competition from industry giants like PhonePe, Paytm, and Google Pay. Additionally, it has reported losses in prior years and faces regulatory challenges that may impact growth.

IPO Reservation:

• Retail Investors: 10% share portion

• Institutional Investors: 75% share portion

• Non-Institutional Investors: 15% share portion

Conclusion:

The Mobikwik IPO presents a promising investment opportunity in a fast-growing fintech sector. With its strong customer base and innovative products, Mobikwik is well-positioned to capitalize on the booming digital payment market in India. However, investors should consider the risks, including competition and profitability concerns. Carefully analyze the financials and market position before making an investment decision.