One MobiKwik Systems IPO: A Deep Dive
The fintech landscape in India is buzzing with excitement as One MobiKwik Systems Limited gears up for its Initial Public Offering (IPO). The IPO, which opened on December 11, 2024, aims to raise Rs 572 crore through a fresh issue of shares. Here’s a comprehensive look at the key details and what investors need to know.
Key Details of the IPO
- Price Band: The shares are offered at a price band of Rs 265 to Rs 279 per share.
- Lot Size: The minimum lot size is 53 shares, making it accessible to a wide range of investors.
- Subscription Period: The IPO is open for subscription from December 11 to December 13, 2024.
- Listing Date: The shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 18, 2024.
Subscription Status
The IPO saw a strong response on the first day, with the issue being fully subscribed within the first hour. Retail investors showed the highest demand, subscribing to their reserved category by 6.65 times2. Non-Institutional Investors (NIIs) also participated actively, while Qualified Institutional Buyers (QIBs) showed minimal interest.
Financial Performance
MobiKwik has shown impressive financial growth over the past few years. The company’s total income grew at a compound annual growth rate (CAGR) of 28% from FY22 to FY24, reaching Rs 345.82 crore1. The Profit After Tax (PAT) for FY24 was Rs 14 crore, with an improved EBITDA margin from a negative 21.24% in FY22 to a positive 4.18% in FY24.
Market Potential
MobiKwik operates in the rapidly growing digital payments sector in India. The digital transaction value in India reached $30 trillion in FY24, with a projected CAGR of 22% between FY24 and FY281. The mobile wallet payments segment, where MobiKwik plays a significant role, is expected to grow from $29 billion in FY24 to $65-75 billion by FY28.
Analysts’ Views
While the IPO has received a positive response from retail investors, some analysts have raised concerns about the company’s valuation. At the upper price band, the issue is valued at a price-to-earnings (P/E) ratio of 113x based on FY24 earnings1. Despite this, brokerage firms like BP Equities have issued a “Subscribe” rating, citing MobiKwik’s strong market presence and growth potential.
Conclusion
The One MobiKwik Systems IPO presents an exciting opportunity for investors looking to tap into the burgeoning digital payments market in India. With a strong financial performance and a promising market outlook, MobiKwik is poised to make a significant impact in the fintech space. However, investors should carefully consider the company’s valuation and their own investment goals before participating in the IPO.
