The One Mobikwik Systems IPO is set to open for subscription on December 11, 2024, with a price band between ₹265 to ₹279 per share. As one of India's leading digital banking platforms, MobiKwik offers a broad spectrum of financial products including payments, digital credit, and investments. The company is on a mission to provide world-class financial products for Bharat, leveraging big data and machine learning to better serve its users and merchants. MobiKwik is particularly focused on empowering India's underserved population with their first access to credit, already having 40 million pre-approved users.

IPO Details

The One Mobikwik Systems IPO is a Book Built Issue worth ₹572.00 Crores. This issue consists entirely of a Fresh Issue of 205.01 lakh shares. The subscription period for this IPO will be open from December 11 to December 13, 2024. The allotment is expected to be finalized by December 16, 2024, with a listing date scheduled for December 18, 2024, on both BSE and NSE.

Financial Overview

For the fiscal years 2022, 2023, and 2024, MobiKwik has shown growth in revenue, reaching ₹8,903.15 million in FY24, up from ₹5,611.16 million in FY23 and ₹5,432.19 million in FY22. Despite these revenue gains, the company faced significant losses in earlier years, as reflected in its EBITDA for FY23 and FY22, which were negative. However, in FY24, the company achieved a positive EBITDA of ₹372.20 million, signaling a potential turnaround. The profit after tax (PAT) for FY24 stood at ₹140.79 million, a marked improvement over previous years of losses.

Investment Considerations

The P/E ratio for the IPO stands at 117.23x on a pre-issue basis and 153.95x post-issue, compared to the industry average of 34x, indicating that the IPO is fully priced. Despite the company’s positive performance in FY24, the valuation suggests that investors may face limited upside potential. The Grey Market Premium (GMP) for the IPO currently stands at ₹0, indicating no expected listing gains based on the current financials. These factors suggest caution for those considering the IPO for short-term gains or long-term investment.

Purpose of the IPO Proceeds

The proceeds from the One Mobikwik Systems IPO will be allocated to various purposes:

1. ₹1,500 million for funding organic growth in the financial services business.
2. ₹1,350 million for funding growth in payment services.
3. ₹1,070 million for research and development in data, machine learning (ML), and AI, as well as product and technology advancements.
4. ₹702.85 million for capital expenditure related to payment devices.
5. Remaining funds will be used for general corporate purposes.

One Mobikwik Systems IPO GMP and Listing Trends

As of December 6, 2024, the Grey Market Premium (GMP) for One Mobikwik Systems IPO is reported to be ₹0, meaning no expected listing gains. The company’s valuation, combined with its financial performance, suggests that the IPO may not deliver substantial listing gains, and investors should be cautious.

How to Check Allotment Status

To check the allotment status for the One Mobikwik Systems IPO, visit the registrar’s website after December 16, 2024. You can check your status by entering your application number, PAN, or DP Client ID.

Final Thoughts

While MobiKwik is a well-established brand in India’s digital banking sector, the high valuation and GMP of ₹0 suggest that the IPO may not offer immediate listing gains. The company’s financial metrics indicate a fully priced offering. Based on these factors, we recommend avoiding the One Mobikwik Systems IPO if seeking short-term gains or looking for a long-term investment.

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

The Current active IPO is Emerald Tyre Manufacturers.

For more insights into the latest investment opportunities, upcoming IPOs, and other market news, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated on the latest share market trends at Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and apply in IPO by opening a Free Demat Account in Choice Broking FinX.