The initial public offering of MobiKwik Systems has generated considerable investor interest, with the issue being oversubscribed 119.38 times.
The IPO received a total of 141.72 crore bids for the 1.18 crore shares on offer, reflecting substantial demand across different investor categories.
Subscription Details
Here’s how the demand for MobiKwik’s IPO was distributed across various investor categories:
- Retail Individual Investors (RIIs): Subscribed 134.67 times, demonstrating robust participation from retail investors.
- Qualified Institutional Buyers (QIBs): Subscribed 119.50 times, reflecting strong confidence from institutional investors.
- Non-Institutional Investors (NIIs): Subscribed 108.95 times, indicating solid interest from high-net-worth individuals.
IPO Details: Price Band, Issue Structure, and Objectives
The IPO, which was open for subscription from December 11 to December 13, 2024, offered shares in the price band of Rs 265 to Rs 279 per share. The total amount the company aims to raise is Rs 572 crore through a fresh issue of equity shares. The breakdown of the issue is as follows:
- 2.16 crore shares at the lower price band (Rs 265).
- 2.05 crore shares at the upper price band (Rs 279).
The funds raised from the IPO will be allocated to several key initiatives:
- Rs 150 crore to provide default loss guarantees (DLG) to lending partners.
- Rs 35 crore to pre-fund escrow and biller accounts, ensuring seamless settlements.
- Rs 100 crore for customer acquisition to strengthen its position in the competitive digital payments market.
- Rs 27.8 crore to enhance the company’s data, machine learning, and AI capabilities.
- Rs 79.2 crore for expanding its product and technology teams.
- Rs 70.285 crore for investments in hardware, including POS machines and sound boxes.
Pre-IPO Anchor Investment
Ahead of the IPO, MobiKwik Systems secured Rs 92.25 crore from anchor investors on December 10, 2024. The company allocated shares at Rs 279 per share to 21 prominent investors, strengthening the credibility of the IPO.
Promoter Stake Changes
Post-IPO, the promoter shareholding will decrease from 34.2% to 25.2%. This change marks a shift in the company’s ownership structure, with a reduced stake held by the promoters.
MobiKwik: A Leading Player in the Fintech Space
Founded in 2008, MobiKwik Systems has grown to become a prominent player in digital payments and financial services, offering a wide range of services such as:
- MobiKwik Wallet: A popular digital wallet.
- MobiKwik ZIP and ZIP EMI: Credit solutions for consumers.
- Zaakpay and UPI Services: Enabling payments for both online and offline merchants.
- MobiKwik Xtra: Peer-to-peer lending services.
The company leverages big data analytics and machine learning to serve its expanding user and merchant base.
Impressive Growth Trajectory
MobiKwik’s operational metrics highlight its growth over recent years:
- User Base: Registered users grew at a compound annual growth rate (CAGR) of 12.31% from FY2022 to FY2024, reaching 161.03 million as of June 2024.
- Merchant Network: Over 4.26 million merchants accept MobiKwik payments both online and offline.
- Market Leadership: The company holds a 23.11% market share in the PPI wallet gross transaction value (GTV) segment.
- Payment GMV: Grew at an annual rate of 45.88% from FY2022 to FY2024.
- MobiKwik ZIP GMV: Disbursements grew at a remarkable annual rate of 112.16% in the same period.
Recent Financial Performance
For the quarter ending June 30, 2024, MobiKwik reported:
- Net Loss: Rs 6.62 crore.
- Revenue from Operations: Rs 342.27 crore.
Despite the net loss, the company’s revenue growth signals strong operational momentum.
Value to Investors
MobiKwik’s IPO aligns with its growth strategy to expand its services and solidify its position in the digital payments and fintech space. The company’s focus on advancing technology, increasing customer acquisition, and investing in infrastructure will help strengthen its market presence.
MobiKwik Systems’ IPO reflects strong investor demand, with notable oversubscription in all categories.
While the company has shown impressive growth, it is important for investors to consider its financial performance, including the net loss in the most recent quarter, before making investment decisions.
As with all IPOs, investing involves risks, including the possibility of price volatility and market fluctuations.
Disclaimer – The information in this article is for informational purposes only and does not constitute financial or investment advice. MarketScope Daily is not responsible for any financial loss or damage resulting from the use of this content. Readers are advised to conduct their own research or consult a financial advisor before making investment decisions. Investments in IPOs carry risks, including potential loss of capital.
