Leading brokerage firms give thumbs up to the issue highlighting the company’s strong market position.
MUMBAI, Dec 11 (The CONNECT) – The Initial Public Offering of One MobiKwik Systems Limited was quickly subscribed within an hour of bidding led by Retail and HNIs. At the end of the day, the issue was subscribed 7.32 times.
The issue received bids of 8,69,30,070 shares against the offered 1,18,71,696 equity shares, at a price band of ₹265-279, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 26.75 times and 8.98 times respectively. Qualified Institutional Buyer Portion was subscribed 0.02 times. The issue kicked off for subscription on Wednesday, December 11, 2024, and will close on Friday, December 13, 2024.
One MobiKwik Systems Ltd raised Rs 257 crores from anchor investors yesterday. Foreign and Domestic Institutions who participated in the anchor were Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC MF, Axis MF, SBI MF, SBI General Insurance.
Leading brokerage firms like Anand Rathi, Nirmal Bang, Bajaj Broking, KR Choksey, Geojit Securities, BP Wealth, Swastika Investmart, Arihant Capital, Marwadi Financial Services, Ventura Securities, and GEPL Capital, Eureka Stock Broking, Master Trust Capital, Ajcon Global have given a “Subscribe” rating to the issue highlighting the company’s strong market position, food financial performance, and favourable industry trends support its growth potential.
MobiKwik’s post-issue Price-to-Sales ratio of 2.5x appears competitive when compared to its peers. At the upper price band, the company is valued at 155x its FY24 earnings. It achieved profitability at both EBITDA and PAT levels in FY24. Additionally, the company’s Payment GMV grew at a robust annual rate of 45.9%, while MobiKwik ZIP GMV (Disbursements) expanded at an impressive annual rate of 112.2% between FY22 and FY24.
SBI Capital Markets Limited, and DAM Capital Advisors Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.
Company Information
One MobiKwik Systems, founded by Bipin Preet Singh and Upasana Taku, primarily with key businesses consisting of payment services and financial services.
As of June 30, 2024, the platform has acquired 161.03 million registered users and enabled 4.26 million merchants to transact both online and offline. By continuously adding new offerings to its digital credit, investments, and insurance verticals, MobiKwik enhances the platform’s value for consumers, aiming to create a comprehensive and profitable ecosystem. This strategy contributed to a profit of ₹14.08 crore for the fiscal year ending March 31, 2024.
Demonstrating a commitment to growth through innovative and cost-efficient solutions, MobiKwik has built a diverse portfolio of products while maintaining one of the lowest employee cost-to-revenue ratios among digital financial service platforms in Fiscal 2023 (Source: RedSeer Report). The company’s Payment GMV has grown at an annual rate of 45.88%, and its MobiKwik ZIP GMV (Disbursements) achieved a remarkable annual growth rate of 112.16% between Fiscal 2022 and Fiscal 2024.
