Mobikwik IPO GMP, Subscription Status Highlights: Check allotment, listing, and other details

As per the recent trend, Mobikwik‘s IPO is seeing demand in the grey market, with shares trading at a premium of Rs 149 after Day 1. This suggests an estimated listing price of Rs 428, representing a 53.41 per cent gain over the upper price band.

The fintech company has fixed the price band for its IPO between Rs 265-279 per share.

Grey market premium (GMP) serves as an unofficial indicator of investor interest in an IPO ahead of its stock market listing.

The company aims to raise Rs 8,000 crore by offloading 102.56 crore shares of promoters and other selling shareholders. This means the raised money will go to the pockets of promoters and selling shareholders. The IPO price band ranges between Rs 74 to Rs 78 per equity share.

A retail buyer can bud for as minimum as one lot that has 53 shares. The minimum amount of investment required by retail investors is Rs 14,787. There are different lot sizes for small and big NIIs. The minimum lot size investment for a small NII is 14 lots of 742 shares, amounting to Rs 2,07,018, and for a big NII, it is 68 lots of 3,604 shares, totalling Rs 10,05,516.

The book running lead managers for the Mobikwik IPO are SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), with Link Intime India Private Ltd serving as the registrar for the issue.

Mobikwik IPO raised Rs 257.40 crore from anchor investors, with the anchor bid date set for December 10, 2024. A total of 9,225,807 shares are being offered to anchor investors. The lock-in period for 50% of the shares will end on January 15, 2025, while the remaining shares will have a lock-in period ending on March 16, 2025.

The Mobikwik IPO offers a total of 2,05,01,793 shares, with 30 per cent (61,50,538 shares) allocated to Qualified Institutional Buyers (QIB), 15 per cent (30,75,269 shares) to Non-Institutional Investors (NII), 10 per cent (20,50,179 shares) to Retail Individual Investors (RII), and 45 per cent (92,25,807 shares) to Anchor investors.

The Mobikwik IPO has a lot size of 53 shares, with investors required to bid for a minimum of 1 lot and in multiples thereof. For retail investors, the minimum investment is for 1 lot (53 shares), totaling Rs 14,787, while the maximum investment is for 13 lots (689 shares), amounting to Rs 192,231. For Small HNIs (S-HNI), the minimum investment is for 14 lots (742 shares) at Rs 207,018, and the maximum investment is for 67 lots (3,551 shares), totaling Rs 990,729. For Big HNIs (B-HNI), the minimum investment is for 68 lots (3,604 shares), amounting to Rs 1,005,516.

The IPO offers a price band of Rs 265 to Rs 279 per share, with a face value of Rs 2 per share and a lot size of 53 shares. The total issue size is 20,501,792 shares, aggregating up to Rs 572 crore, all of which are part of a fresh issue. The issue is a Book Built Issue IPO, and the shareholding pre-issue is 57,184,521 shares, which will increase to 77,686,313 shares post-issue.

The Mobikwik IPO opens today, December 11, 2024, and will close on December 13, 2024. The basis of allotment will be finalized on December 16, with refunds and credit of shares to Demat accounts on December 17. The shares are scheduled to be listed on December 18, 2024. The cut-off time for UPI mandate confirmation is 5 PM on December 13, 2024.

“MobiKwik’s addressable market in FY23 is approximately USD 5.3 bn (INR 424 bn), projected to grow to ~USD 16-18 bn (INR 1.3-1.4 tn) by FY28, driven by rising internet penetration, higher disposable incomes, increasing digital penetration, and awareness,” added Geojit Financial Services in an IPO note.

As of 3:55 PM, the Mobikwik IPO has been subscribed 6.61 times in total. The retail portion saw a subscribtion rate of 25.44 times, while the NII category subscribed 7.27 times. However, the QIB category saw minimal interest, with just 0.01 times subscribed.

The book-running lead managers for the Mobikwik IPO are SBI Capital Markets and Dam Capital Advisors Ltd, with Link Intime India serving as the official registrar for the offering.

“Due to the nature and scale at which the company’s platform operates, they have discovered various flywheels within the network that they have built. These reinforce themselves, leading to a high pace of near seamless execution. As a two-sided network, as they acquire more consumers, their merchants benefit through higher consumer spending. Similarly, as they add more merchants, there is an organic increase in the use cases for existing consumers to transact with these merchants. Due to the prominent visibility of MobiKwik at merchant point-of-sale, new consumers are encouraged to join the network thereby further reducing CAC ,” said Anand Rathi Broking on the IPO note.

The MobiKwik IPO as of 2:07 PM was subscribed 4.64 times. Retail investors showed strong interest with 18.76 times subscription, while the NII category saw 4.50 times, and the QIB category had no bids yet.

For the fiscal year ending March 31, 2024, Mobikwik Systems reported a net profit of Rs 14.08 crore, a turnaround from the previous year’s loss of Rs 83.81 crore. The company’s revenue reached Rs 87 crore, a 62 pr cent surge compared to Rs 39.46 crore in FY23. Its payment Gross Merchandise Value (GMV) grew at a compound annual growth rate (CAGR) of 45.88 per cent, while Mobikwik ZIP GMV saw a CAGR of 112.16 per cent between FY22 and FY24. The company’s main areas of focus include payments, consumer credit, investments, and insurance.

The company plans to use the funds from its fresh issuance in the following ways: Rs 150 crore will be allocated to support the growth of its financial services business, while Rs 135 crore will be used to boost its payment services business.

Additionally, Rs 107 crore will go towards research and development in areas like data, machine learning, artificial intelligence, and technology products. The company will also spend Rs 70.28 crore on capital expenditures for its payment devices business and other general corporate purposes.

MobiKwik Systems IPO is set to debut on the Indian stock exchanges on December 18.

As of 11:43 AM IST, the Mobikwik IPO has been subscribed 2.19 times overall. The retail category saw a subscription of 9.19 times, while the QIB category had no subscriptions so far, and the NII category was subscribed 1.90 times till now.

“At the upper band company is valuing at 155x its FY24. Following the issuance of equity shares, the company’s market capitalization stands at ₹21,674.5 million, with a market cap-to-sales ratio of 2.4 based on its FY24 earnings. The company is preparing to introduce additional services, such as investments and insurance, to establish itself as a comprehensive digital platform for financial services, which is expected to boost its future revenue and profits. However, it reported losses for Q1 FY25 due to pre-funding cost adjustment provisions. We believe that the issue is richly priced and recommend “Subscribe – Long Term” rating to the IPO,” said Anand Rathi broking in an IPO note.

MobiKwik Systems garnered Rs 257 crores from anchor investors ahead of its IPO opening today. The anchor investors include prominent foreign and domestic institutions like the Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley, White Oak Capital, 360 One Asset & Wealth Management, HDFC Mutual Fund, Axis Mutual Fund, SBI Mutual Fund, and SBI General Insurance, among others.

“At the upper price band of ₹279, Mobikwik is available at Mcap/sales of 2.5x (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 in an IPO note.

According to recent trends, Mobikwik shares are trading at a premium of Rs 136 in the grey market, indicating an estimated listing price of Rs 415, a 48.75% gain. The grey market is an unofficial platform for trading shares.