One Mobikwik Systems Limited, India's leading digital banking platform, is launching an IPO worth ₹572.00 Crores. This is a Fresh Issue consisting of 205.01 Lakh Shares priced in the range of ₹265 to ₹279 per equity share. The subscription period for the IPO will be from December 11, 2024, to December 13, 2024, with shares expected to list on BSE and NSE around December 18, 2024.

Company Overview

MobiKwik, founded by Bipin Preet Singh and Upasana Rupkrishan Taku, provides a wide range of digital financial services for both consumers and merchants. The platform offers payments, digital credit, and investment solutions while utilizing big data and machine learning to enhance its user experience. MobiKwik’s mission is to serve the unbanked population in India, with over 40 million pre-approved credit users.

Financial Performance

MobiKwik has seen growth in revenue but has struggled with profitability:

• Revenue for FY 2024: ₹8,903.15 Million
• EBITDA for FY 2024: ₹372.20 Million (showing improvement from prior years)
• Profit After Tax (PAT) for FY 2024: ₹140.79 Million

However, the company’s pre-issue EPS is ₹2.38, and the post-issue EPS is projected to be ₹1.86. This results in a pre-issue P/E ratio of 117.23x and a post-issue P/E ratio of 153.95x, compared to the industry average of 34x, indicating a fully priced IPO.

Grey Market Premium (GMP) and Listing Trend

Currently, the Grey Market Premium (GMP) for One Mobikwik Systems IPO is ₹0, suggesting no potential listing gains. The IPO GMP trend is as follows:

• 6 December 2024: ₹0 (expected listing price ₹279)

This lack of GMP premium reflects the muted demand for the IPO, and investors should not expect substantial short-term gains upon listing.

IPO Subscription and Allotment Process

The One Mobikwik Systems IPO will open for subscription from December 11, 2024, to December 13, 2024. The allotment date is set for December 16, 2024. To check the allotment status, investors should:

1. Visit the IPO allotment status page.
2. Select One Mobikwik Systems Limited IPO from the dropdown.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

Objectives of the IPO

The funds raised through the Fresh Issue will be utilized for:

1. Funding organic growth in the financial services business: ₹1,500.00 Million
2. Funding organic growth in the payment services business: ₹1,350.00 Million
3. Research and development in data, ML, AI, and technology: ₹1,070.00 Million
4. Capital expenditure for payment devices business: ₹702.85 Million
5. General corporate purposes
   
   

   The Upcoming IPOs in this week and coming weeks are Jungle Camps, Toss The Coin, Sai Life Sciences, Mobikwik, Vishal Mega Mart, Supreme Facility, Purple United, Yash Highvoltage, International Gemmological, Inventurus Knowledge, Rosmerta Digital and Avanse Financial.

   The Current active IPO is Dhanlaxmi Corp and Emerald Tyre Manufacturers.

IPO Review

MobiKwik has a strong presence in the digital payments and credit space but is struggling with profitability. The high P/E ratio, coupled with limited EPS growth, suggests that the IPO is fully priced. Moreover, the 0% GMP indicates a lack of immediate market enthusiasm.

Investors looking for listing gains or long-term investments may find the valuation of this IPO too high relative to its current financial performance and industry comparisons. Therefore, we recommend avoiding the One Mobikwik Systems IPO for both listing gains and long-term investment purposes.

For more IPO updates, check out Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi.

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