MobiKwik IPO Subscription Day 2: The initial public offering (IPO) of fintech company One Mobikwik Systems enters its third day of bidding on December 13. The Mobikwik IPO, which opened for subscription on December 11, will close today. The public issue has seen strong demand, becoming oversubscribed within hours of opening. By the end of the second day, the Mobikwik IPO was subscribed 20.37 times in total.
MobiKwik Systems said on Tuesday that it had garnered Rs 257 crore from anchor investors ahead of its initial public offering (IPO). Foreign and domestic institutions who participated in the anchor round included Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC Mutual Fund (MF), Axis MF, SBI MF and SBI General Insurance, according to a circular uploaded on BSE’s website.
The IPO is open for subscription starting December 11, 2024, in the Indian primary market. The fintech company has set the price band for the Mobikwik IPO between Rs 265 and Rs 279 per share. The IPO subscription period will run from Wednesday to Friday, December 11 to 13, 2024.
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Mobikwik IPO Subscription Status
MobiKwik IPO was subscribed 20.37 times in total as the issue received bids for 24.18 crore equity shares as against 1.18 crore shares on the offer. The portion reserved for retail investors was subscribed 64.52 times, the portion reserved for Qualified Institutional Buyers (QIB) was booked 84%, and the portion reserved for Non Institutional Investors (NII( was booked 30 times on the second day, according to NSE data.
Mobikwik IPO GMP Today
As for the GMP, the company shares are trading at a premium of about 57%.
The Grey Market Premium (GMP) refers to the unofficial market price of a company’s shares before they are listed on the stock exchanges, typically during an IPO (Initial Public Offering). It reflects the price at which the shares of an upcoming IPO are being traded in the grey market, which is a market that operates outside the formal stock exchanges.
GMP is used by traders and investors to gauge the market sentiment about an IPO. A higher GMP suggests strong demand for the shares and a positive outlook for the listing. Conversely, a low or negative GMP indicates weaker demand and possibly a less favorable listing.
However, it’s important to note that GMP is not an official or regulated metric, and it can fluctuate depending on market conditions and investor sentiment. It’s essentially a speculative figure based on unofficial transactions in the grey market.
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Mobikwik IPO Price Band
The fintech company has set a price band of Rs 265 to Rs 279 per equity share for the book-built issue.
Mobikwik IPO Opening Date
The Mobikwik IPO subscription will be open from December 11 to 13, 2024, meaning the book-built issue will be available for bidding from Wednesday to Friday.
Mobikwik IPO Lot Size
The company aims to raise Rs 572 crore through a completely fresh issue of shares. Bidders can apply in lots, with each lot consisting of 53 shares of the company.
Mobikwik IPO Share Allotment Date
The share allotment is most likely to take place on December 14, 2024, Saturday. In case of any delays, the allotment announcement may be made on December 16, 2024.
Mobikwik IPO Objective
The company plans to use the proceeds as follows: Rs 150 crore will be allocated for organic growth in its financial services business, Rs 107 crore for research and development in artificial intelligence, machine learning, and technology, and Rs 135 crore to expand its payment services. Additionally, Rs 70.2 crore will be used for capital expenditure on payment devices and for general corporate purposes.
SBI Capital Markets and DAM Capital Advisors are the public offer’s book-running lead managers, while Link Intime India is the registrar.
Should You Invest?
Experts remain optimistic about the long-term prospects of the One Mobikwik Systems IPO, citing its reasonable valuation and strong growth potential.
Geojit Financial Services has given the IPO a “subscribe” rating, noting its attractive valuation. “At the upper price band of ₹279, Mobikwik is available at a market capitalization-to-sales ratio of 2.5 times (based on FY24 financials), which appears reasonably priced. We recommend a ‘subscribe’ rating on a long-term basis, considering the company’s strong brand recognition, diversified offerings, rapid scaling, continuous innovation, customer loyalty, and a promising industry outlook,” said Geojit.
Bajaj Broking also suggests subscribing for the long term, highlighting Mobikwik’s significant growth potential. The brokerage pointed to a RedSeer Report, which states that traditional market players currently serve around 20-25 million affluent and 90-100 million well-off individuals in India. However, there remains a large, untapped market of more than 500 million people in the middle-income group, which is largely underserved by traditional players.
Of this group, 120-130 million individuals are credit-active, presenting a significant opportunity. Additionally, more than 400 million consumers are not yet engaged in credit activities but have a need for financial products. Bajaj Broking emphasized that by leveraging payment data and facilitating smaller loans, Mobikwik can help establish credit histories for these individuals, driving greater financial inclusion.
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