Mobikwik IPO Day 2: Key Details, GMP, and Should You Apply?

The Mobikwik IPO, launched by One Mobikwik Systems Limited, is drawing significant attention from investors as it enters its second day of bidding. The IPO offers a price band of ₹265 to ₹279 per equity share and seeks to raise ₹572 crore to fuel its growth plans. With a strong subscription rate and a premium in the grey market, here’s what you need to know before making a decision.

Key Details About Mobikwik IPO

1. Price Band: ₹265 to ₹279 per share.
2. IPO Size: ₹572 crore, entirely fresh issue.
3. Lot Size: Investors can bid for a minimum of 53 shares.
4. Subscription Window: Open from December 11 to December 13, 2024.
5. Subscription Status (Day 2):
   • Overall: 20.41 times
   • Retail: 64.65 times
   • NII: 30.07 times
   • QIB: 84%
6. GMP (Grey Market Premium): ₹136 per share as of December 12, 2024.
7. Allotment Date: December 14, 2024.
8. Listing Date: December 18, 2024, on BSE and NSE.
9. Lead Managers: SBI Capital Markets and DAM Capital Advisors.

Mobikwik Financial Performance

• Revenue Growth: 59% YoY in FY24.
• Profit After Tax (PAT): Increased by 117%, with the company turning profitable at both EBITDA and PAT levels.
• Payment GMV Growth: 45.9% annually between FY22 and FY24.
• Market Capitalization: ₹2,295.45 crore.

Expert Reviews and Recommendations

VLA Ambala (Stock Market Today):

• Highlights Mobikwik's revenue growth and profitability improvement.

• Cautions about rising borrowings but considers the IPO price band moderate.
• Recommends a "Subscribe" rating for investors.

BP Equities:

• Notes the company’s strong position in the fintech industry, with significant growth in digital payments.

• Suggests the issue is expensively priced at a P/E of 113x but recommends a "Subscribe" rating due to strong financials and market presence.

Swastika Investmart:

• Acknowledges consistent revenue growth and recent profitability.

• Warns of competition in the fintech space but gives a "Subscribe" tag for high-risk investors.

Should You Apply for the Mobikwik IPO?

The Mobikwik IPO comes at a time of significant growth in the fintech and digital payments sectors. Key advantages include its:

• Proven revenue growth trajectory.
• Recent profitability at both EBITDA and PAT levels.
• Strong market presence in digital payment solutions.

However, investors should note the high valuation and competitive fintech landscape, which may affect long-term growth. The strong subscription numbers, particularly in the retail segment, and the positive grey market premium indicate high investor interest.

Recommendation:

• Long-term investors: Apply, considering the growth potential in digital payments.

• Risk-averse investors: Carefully evaluate the high valuation and consult with a financial advisor.

Disclaimer: The above recommendations are based on analysts' opinions. Investors are advised to conduct independent research or consult certified experts before making investment decisions.