One of the leading fintech platforms in India, One Mobikwik Systems, is getting ready to storm the markets with its much-awaited Initial Public Offering (IPO). The company offers digital payment and financial services to consumers as well as merchants. It plans to raise ₹572 crore through this IPO. With a growing user base and an impressive track record, Mobikwik’s foray into the public market has attracted much attention, particularly from investors in the fintech and technology space.
Here’s a detailed breakdown of the key information about the Mobikwik IPO, including important dates, pricing, grey market activity, and the company’s plans for utilizing the funds.
Key Details of the Mobikwik IPO
1. IPO Dates and Timelines
Opening Date: Wednesday, December 11, 2024
Closing Date: Friday, 13th December 2024
Finalization of Allotment: Monday, December 16, 2024
Date of Listing: Monday, December 18, 2024
Equity shares of the company to be listed on both the stock exchanges – BSE and the NSE.
2. Price Band and Lot Size
Price Band: Range for ₹265 per equity share to ₹279 per equity share.
Lot Size: The lot size has been kept at 53 shares, meaning the minimum investment required would be approximately ₹14,835, if one goes by the upper price band.
3. Nature of the Issue
The Mobikwik IPO is an entirely fresh issue of 2.05 crore equity shares. Unlike some IPOs, this offering does not have an OFS component, which means that all the proceeds go directly to the company for growth and expansion initiatives.
Reason for the IPO
Mobikwik aims to use the funds from the IPO to fortify operations and drive growth across multiple segments of its business. Here’s how it proposes to use the proceeds:
- Scaling Financial and Payment Services Businesses:
Mobikwik will deepen penetration into the digital payments ecosystem and expand further financial services offerings for more customers.
- Investments in Technology and Data Capabilities:
Much of the funds will be dedicated to investments in cutting-edge technologies such as Machine Learning (ML), Artificial Intelligence (AI), and advanced product development. These technologies will enhance Mobikwik’s offerings, improve user experience, and optimize efficiency.
- Capital Expenditure for Payment Devices:
To increase its presence in merchant networks, the company will invest in the purchase and distribution of payment terminals that enable smooth transactions for small and medium-sized enterprises.
- General Corporate Purposes:
Some of the funds will also be utilized for general corporate expenses to help the company achieve its operational and strategic objectives.
Who is Managing the Mobikwik IPO?
Lead Managers: Appointed book running lead managers have been SBI Capital Markets and Dam Capital Advisors Ltd. These well-established entities carry the expertise that ensures the successful execution of the IPO.
Registrar to the IPO: For share allotment, including investor services, Link Intime India Pvt. Ltd.
Grey Market Activity in Mobikwik IPO
In the grey market
Mobikwik shares are gaining quite significant interest with the approach of the IPO opening date; Grey Market Premium is, therefore, a vital index of the investor sentiment.
Currently, Mobikwik’s shares are trading at a ₹120 premium over the upper price band of ₹279 per share, taking the effective grey market price to ₹399 per share. This translates to a 43% premium, reflecting robust demand and optimism among potential investors.
Though GMP may indicate market enthusiasm for a stock, investors should use prudence and rely on an ensemble of factors such as the company’s financial performance, business fundamentals, and the general industry outlook before making an investment.
What Makes Mobikwik IPO a Strong Contender?
The IPO of Mobikwik is at a time when the fintech sector is experiencing exponential growth due to a spurt in digital payments, growing smartphone penetration, and increased cashless transactions.
Company Strengths:
- Expanding Ecosystem: It has built a comprehensive ecosystem catering to both individuals and businesses, making it a one-stop platform for payments, lending, and financial services.
- Tech-Driven Innovation: With a very focus on leveraging AI and ML, Mobikwik seems to be a technology-first company that is seeking to redefine digital financial solutions.
- Market Opportunity: Rapid growth in the Indian market for digital payments has become a great opportunity for Mobikwik to scale its operations, gain market share.
The Mobikwik IPO could draw in both retail as well as institutional investors trying to capitalize on the fast-growing Indian fintech. Innovation focus by the firm combined with sound plans of expansion makes it very appealing for investment.
However, like any other investment, due diligence is very important. Investors should see the prospectus of the company, know its financial health, and understand its long-term growth potential before subscribing to the IPO.
Stay tuned for more on the Mobikwik IPO will follow with allotment details and listing performance.
Disclaimer: The opinions and investment advice provided by Finaffair experts are their own and do not reflect the views of the website or its management. Finaffair encourages users to consult qualified professionals before making any investment decisions.
