Mobikwik is a fintech company providing prepaid digital wallets and online payment services.. Mobikwik IPO looks to raise Rs 572.00 crores. The issue is entirely a fresh issue.
IPO opens
December 11, 2024
IPO Closes
December 13, 2024
IPO Size (Rs.)
₹572.00 Cr
Breakup
Fresh issue
Face Value:
₹ 2
IPO Price in Rs :
₹265 to ₹279 per share
Minimum Lot
53 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
SBI Capital Markets, DAM Capital Advisors
Registrar
Link Intime India
About One Mobikwik Systems Limited:
The Company was incorporated under the name ‘One Mobikwik Systems Pvt Ltd’ on March 20, 2008. The name was changed to ‘One Mobikwik Systems Ltd’, on conversion to a public limited company, on June 25, 2021.
The company is platform business with a two-sided payments network, consisting of consumers and merchants. The company’s key businesses include (a) Payment services and (b) Financial Services.
The company is one of the largest digital financial product and services platform in India by registered users as of FY 2023.
As on June 30, 2024, over 4.26 million Merchants had accepted payments through the company’s payment modes, including over 4.13 million physical stores and 0.13 million Online Merchants.
As of May 2024, the Company is the largest wallet player in India with 23.11% market share of the PPI wallet gross transaction values (“GTV”) (excluding Fast Tag GTV).
MobiKwik was founded by Bipin Preet Singh and Upasana Taku, who have prior
experience in building scalable technology and financial products at their previous organisations.
Financials : One Mobikwik Systems Limited
Financial Details (₹ In Cr)
2024 (3)
FY 24
FY23
FY 22
Share Capital
11.44
11.44
11.44
11.44
Net Worth
158.65
162.59
142.69
216.54
Total Borrowings
206.34
211.7
192.27
150.91
Total Income
345.83
890.32
561.12
543.22
Revenue from Operations
342.27
875
539.47
526.57
Revenue Growth (%)
–
62.2
2.45
–
EBITDA as stated
2.23
37.22
-55.92
-115.41
EBITDA Margin (%)
0.64%
4.18%
-9.97%
-21.24%
Net Profit
-6.62
14.08
-83.81
-128.16
Net Profit (%)
-1.91
1.58
-14.94
-23.59
Share Capital
11.44
11.44
11.44
11.44
Net Worth
158.65
162.59
142.69
216.54
Total Borrowings
206.34
211.7
192.27
150.91
Post issue Share Capital
15.54
FV
2.0
IPO price
279.0
EPS Fy24
1.8
PE
154.0
EPS Fy25 (annualized)
-3.4
PE (annualized)
—
Market cap in cr.
2,168
Market cap / Sales
4.02
Anchor: Mobikwik IPO
The company raised Rs 257 crore from anchor investors. Norges Fund, Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC MF, Axis MF, SBI MF, and SBI General Insurance were among the investors who participated in the anchor allotment
Salient Points: Mobikwik IPO
The company operates a two-sided payments platform connecting consumers and merchants.
It provides a wide range of services, including digital payments, ZIP credit, ZIP EMI, insurance, and investments, catering to various customer needs.
Net Proceeds:
Particulars
Total Estimated amount (₹ in million)
Funding organic growth in financial services business
1,500.00
Funding organic growth in payment services business
1,350.00
Research and development in data, ML and AI and product and technology
1,070.00
Capital expenditure for payment devices business
702.85
General corporate purposes
[•]
The company’s Registered Users have grown at a CAGR of 12.31% between FY22 to FY24 to 155.84 Mn, while the company had 161.03 million Registered Users as of June 30, 2024.
Peers: Peer Paytm is still in loss and trading at P/BV of 4.3 times Mobikwik is offered at price to book value multiple of 3.0 times.
It has the 2nd largest GMV among mobile wallet players in India as of FY24.
The company’s Payment GMV has grown at an annual rate of 45.88% and MobiKwik ZIP GMV (Disbursements) has grown at an annual rate of 112.16% from FY2022 to FY2024.
The company’s brand MobiKwik has a good recall and is is well entrenched in the digital payments landscape and consumers associate it with c digital payments.
MobiKwik is the 3rd largest player in the mobile wallet segment in India with 13.5 cr registered users as of Mar’24.
Among risks, company faces stiff competition from major players, including PhonePe, Paytm, Airtel Payments Bank, and Freecharge.
PE FY24 154x
I intend to apply in Mobikwik IPO. MobiKwik operates in fast growing digital payments and financial services market which offers good growth opportunities. The company has strategically made shift to better margin financial services, capitalizing on its established user base.
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
