Are you ready for the One Mobikwik Systems Limited IPO? The initial public offering worth ₹572 crores will open for subscription on December 11, 2024 and will close on December 13, 2024. It is an entirely fresh issue of 2.05 crore shares.
The price band for the One Mobikwik Systems IPO has been set between ₹265 to ₹279 per share with a lot size of 53 shares. Thus, the minimum investment amount for retail investors is ₹14,787. Allotment of shares is anticipated to be completed on December 16, 2024 with listing on BSE and NSE tentatively scheduled for December 18, 2024. Seize today's IPO opportunity! Stay ahead with our curated list of upcoming public offerings.
One Mobikwik Systems IPO is a fundraise worth ₹572 crores comprising fresh issue of 2.05 crore shares. The IPO will be available for subscription from December 11, 2024, to December 13, 2024, providing an opportunity for investors looking to gain a stake in the fintech sector.
| One Mobikwik Systems IPO Date | December 11, 2024 - December 13, 2024 |
| Price Band | ₹265 to ₹279 per share |
| Face Value | ₹2 per share |
| Lot Size | 53 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 20,501,792 shares of ₹2 per share, amounting to ₹572 crores |
| Total Issue Size | 20,501,792 shares of ₹2 per share, amounting to ₹572 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 77,686,313 |
| Share Holding Pre Issue | 57,184,521 |
The One Mobikwik Systems IPO opens for subscription on December 11, 2024, and closes on December 13, 2024, with allotment slated for December 16, 2024.
| IPO Open Date | December 11, 2024 (Wednesday) |
| IPO Close Date | December 13, 2024 (Friday) |
| Basis of Allotment | December 16, 2024 (Monday) |
| Initiation of Refunds | December 17, 2024 (Tuesday) |
| Credit of Shares to Demat Account | December 17, 2024 (Tuesday) |
| Listing Date on Exchanges | December 18, 2024 (Wednesday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 13, 2024 |
One Mobikwik Systems Limited, a fintech company incorporated in March 2008, provides comprehensive digital payment solutions and financial services. The platform enables consumers to pay utility bills, make purchases at online and offline merchants, transfer money, check bank balances, and use QR code payments through various modes including UPI and Rupay credit cards. With innovative products like MobiKwik ZIP and Merchant Cash Advance, the company leverages digital public infrastructure to offer seamless, digital-first experiences.
As of June 30, 2024, Mobikwik boasts 161.03 million registered users and supports 4.26 million merchants across online and offline payment ecosystems. The company's product range includes online checkout solutions, QR code payment systems, merchant-focused technologies like the Vibe Soundbox and EDC machines, and a flagship ZIP service allowing consumers to buy now and pay later. With 226 permanent employees in its technology function and 19 registered trademarks, Mobikwik distinguishes itself through its technology-first approach, brand trust, and commitment to providing efficient, user-friendly financial solutions.
Mobikwik aims to strategically deploy its net proceeds across key growth areas, including expansion of its financial and payment services businesses, substantial investment in cutting-edge technologies such as data, machine learning, and artificial intelligence, allocation of capital expenditure for payment devices, and maintaining flexibility for general corporate purposes.
The One Mobikwik Systems IPO showcases a healthy market capitalization of ₹2,295.45 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Debt-to-Equity ratio of 0.73, indicating that the company does not rely too heavily on debt financing.
The RoNW stands at 8.66%, while the Price-to-Book Value (P/BV) is seen at 9.81. On an annual basis, the company's Profit After Tax (PAT) grew by 117% while the revenue increased by 59% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹2.46, which drastically drops to -₹3.22 post-IPO, reflecting the significant changes in shareholding and capital structure.
| Period Ended | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 345.83 | 890.32 | 561.12 | 543.22 |
| Assets | 908.10 | 854.65 | 714.33 | 836.13 |
| Net Worth | 216.54 | 142.69 | 162.59 | 158.65 |
| Profit After Tax | -6.62 | 14.08 | -83.81 | -128.16 |
| Total Borrowing | 206.34 | 211.70 | 192.27 | 150.91 |
| Reserves & Surplus | 147.21 | 151.15 | 131.26 | 205.10 |
Amount in ₹ crores
MobiKwik has established a strong market position in the Indian fintech landscape, distinguished by its comprehensive digital payment solutions and innovative offerings. The brand is well-entrenched in the digital payments ecosystem, with prominent visibility at merchant point-of-sale locations across key metros that continuously attract new consumers. Its flagship product Xtra, a peer-to-peer lending platform, has already accumulated ₹1,834.8 crore in assets under management within just 26 months of launch, demonstrating the company's ability to create compelling financial products.
The company's competitive strengths are further amplified by its impressive growth metrics and strategic positioning. With 161 million users and 4.26 million merchants enabled, MobiKwik has shown a remarkable 59% revenue increase from FY2023 to FY2024. Innovative products like MobiKwik ZIP and Merchant Cash Advance provide flexible payment solutions that appeal to both consumers and businesses. Despite past financial losses, the company's strong growth trajectory, expanding customer base, and focus on technological innovation position it favorably for potential future profitability, particularly in underpenetrated rural markets.
MobiKwik faces significant challenges in the highly competitive fintech landscape. The company is vulnerable to security breaches that have eroded user trust, with several instances of inappropriate data access highlighting cybersecurity weaknesses. Regulatory compliance is another critical concern, as the lack of strong regulations against online fraud increases the risk of noncompliance with Reserve Bank of India (RBI) guidelines. The company heavily depends on third-party providers, creating potential disruptions in its service delivery. Additionally, its Buy Now, Pay Later (BNPL) business model exposes the company to substantial credit risks, with potential issues around consumer debt, defaults, and ineffective collection efforts.
The company also struggles with technological dependencies, being reliant on internet search engines and mobile operating systems that could impact its visibility and user accessibility. Intellectual property protection is another ongoing challenge, with the risk of losing proprietary advantages to potential infringers. The intense market competition from major players like PhonePe, Paytm, Airtel Payments Bank, and others across payments, lending, and investment segments further compounds MobiKwik's challenges. Fraudulent transactions and the lack of robust mechanisms to prevent cyber fraud not only put user data at risk but also threaten to damage the company's hard-earned market reputation.
The opportunity of being an early investor in the company’s journey as a publicly listed firm and the potential for making profits makes the One Mobikwik Systems Limited IPO an attractive opportunity among upcoming IPOs. However, as with any IPO investment, it's crucial to evaluate the company's fundamentals, market conditions, and personal investment strategy before committing funds. Conduct thorough research to determine if this IPO aligns with your future financial goals and risk tolerance.
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