One Mobikwik Systems IPO: Rs 572 Crore Public Issue To Open For Subscription Tomorrow; Key Details

One Mobikwik Systems Limited is all set to launch its Initial Public Offering (IPO) on Wednesday, December 11, 2024. The Gurugram-based fintech company, known for its flagship digital wallet and financial services platform, aims to raise Rs 572 crore through this public offering. This marks Mobikwik's second attempt at going public after shelving its IPO plans in 2021 due to unfavourable market conditions.

With the subscription period running from December 11 to December 13, the IPO has already garnered attention in the grey market, signalling strong investor interest. Here's a detailed breakdown of the Mobikwik IPO.

Key Highlights

Price Band & Grey Market Premium (GMP)
The price band for the IPO is fixed at Rs 265 to Rs 279 per equity share. The issue's grey market premium (GMP) has surged to Rs 132 as of today, indicating a potential listing gain of around 40%. According to stock market observers, the shares are commanding significant demand.

IPO Size & Structure

The Rs 572 crore issue is entirely a fresh offering, allowing the company to raise new capital to fund its growth initiatives. Notably, this is a downsized version of the earlier Rs 700 crore IPO plan filed in January 2024.

Lot Size & Investment Details

Investors can apply for the IPO in lots, with one lot comprising 53 shares. At the upper price band of Rs 279, a single lot will cost Rs 14,787. Retail investors can bid for a maximum of 13 lots, amounting to 689 shares, with a total investment of Rs 1,92,231.

Important Dates

IPO Opening Date: December 11, 2024
IPO Closing Date: December 13, 2024
Allotment Date: December 14, 2024 (or December 16 in case of delays)
Listing Date: December 18, 2024
Anchor Book Bidding Date: December 10, 2024

Financial Performance

Mobikwik has demonstrated growth, with its FY24 revenue increasing by approximately 59% year-on-year. The company's Profit After Tax (PAT) surged by 117% during the same period, reflecting its growing profitability. The IPO values the company at a market capitalization of Rs 2,295.45 crore.

Despite stiff competition from established players like Paytm, PhonePe, Airtel Payments Bank, and Freecharge, Mobikwik has carved a niche in the digital payments and financial services space. Its portfolio includes digital credit, insurance, and investment products, enhancing its appeal to a broad consumer base.

Objectives of the IPO

The fresh funds raised through the IPO will support Mobikwik's expansion and operational needs, particularly in strengthening its core offerings in digital payments and financial products, investing in technological advancements to enhance user experience, and covering general corporate expenses.

Leadership & Market Backing

Founded by Bipin Preet Singh and Upasana Taku, Mobikwik has grown into a trusted brand in the fintech ecosystem. Its financial backing from prominent investors such as Peak XV and ADIA adds to its credibility.

SBI Capital Markets and DAM Capital Advisors are involved in the IPO as lead managers, while Link Intime India Private Limited serves as the registrar.