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One Mobikwik IPO Details: Launch Date, Share Price, Size, GMP & Review

One-Mobikwik-Systems

One Mobikwik Systems Limited – About the Company

One Mobikwik Systems Limited incorporated in 2009, is one of the leading online platforms offering Mobile Recharge, Buy Now Pay Later and Wallet facility to its users. It also provides one-click UPI-based online payment services for e-commerce and also offers wallet services to make online payments or keep money digitally for mobile recharges etc.

Moreover, MobiKwik has introduced Zaakpay, its subsidiary payment gateway and MobiKwik Zip which is a flagship BNPL solution providing an easier way to accept or pay money digitally making the online payment system trouble-free and faster.

As of 31st March 2021, it has 101.34 million registered users and 3.4 million merchant partners like e-commerce, offline retail shops and biller partners.

One Mobikwik IPO Objectives

The entire issue of One Mobikwik IPO is a fresh issue, hence the whole fund raised from issuing the equity shares will go to the company. Mobikwik is going to utilize the net proceeds from the issue to reduce its debts and fund the organic growth of the company.

As per the offer documents out of the total fund raised from the IPO, Rs 250 crore will be used for financial services business, Rs 135 core each for payment services and investment data, AI/ML, and product tech. And the remaining Rs 70.28 capital expenditure for payment devices and general corporate purposes.

One Mobikwik IPO Details:

IPO Open Date To be Updated
IPO Close Date To be Updated
Basis of Allotment To be Updated
Listing Date To be Updated
Face Value To be Updated
Price To be Updated
Lot Size To be Updated
Total Issue Size [.] shares
(aggregating up to Rs 1,000.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs 1000.00 crore
Offer For Sale No Offer for Sale
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not less than 75% of the Net Issue
Retail Shares Offered Not more than 10% of the Net Issue
NII (HNI) Shares Offered Not more than 15% of the Net Issue

 

One Mobikwik IPO Issue Price & Size

One Mobikwik IPO issue price is between Rs XXX to Rs XXX. The issue size of One Mobikwik IPO is Rs 1,000, and the entire issue is a fresh issue.

One Mobikwik IPO Launch Date

The One Mobikwik IPO will be open on XXXX and closed on XXXX. Investors can bid or apply in the One Mobikwik IPO between these dates.

One Mobikwik Financial Statement:

Particulars (Rs in Million) FY24 (6M) FY23 FY22 FY21 CAGR
Revenue from Operations 3,810.88 5,394.67 5,265.65 2,885.71 36.73%
Other Income 62.85 216.49 166.54 136.85
Total Income 3,873.73 5,611.16 5,432.19 3,022.56 36.25%
Operational Expenses 2693.01 4329.74 4432.97 2692.62
Other expenses 975.33 1840.62 2153.28 1348.08
EBITDA 205.39 (559.20) (1154.06) (1018.14) -25.89%
EBITDA Margin% 5.39% -10.37% -21.92% -35.28%
Depreciation 19.68 42.82 20.99 13.14
Interest 90.38 204.24 109.13 71.35
Profit/Loss Before Tax 95.33 (806.26) (1284.18) (1102.63)  
Total tax 0.55 31.88 (2.56) 10.37
Profit/Loss After Tax 94.78 (838.14) (1281.62) (1113.00) -13.22%
PAT Margin% 2.49% -15.54% -24.34% -38.57%  
EPS Diluted (Rs) 1.61 (14.66) (23.04) (22.18)  

Source: DRHP

One Mobikwik Financial Performance

The revenue of One Mobikwik Systems stood at Rs 381.09 crore in the first half of the financial year 2024. The revenue of the company for the full year FY23 was Rs 539.47 crore which has grown at a CAGR growth of 36.73% from Rs 228.57 crore in FY21.

However, the EBITDA from FY21 to FY23 has shown a negative CAGR of 25.9% resulting company has negative EBITDA of Rs 55.92 crore in FY23. The company has managed to generate a positive EBITDA of Rs 20.54 crore in the first six months of FY24.

Similarly, the company incurred a loss of Rs 83.81 crore in FY23, and the loss for FY21 was much higher at Rs 111.3 crore. However, now the company has managed to register a profit of Rs 9.48 crore in the first six months of the financial year 2024.

In the same first half of FY24, the EBITDA margin and Net Profit Margin of the company were 5.39% and 2.49% respectively. In previous financial years company had negative EBITDA as well as net profit margins that have improved quite well in the last three years making the company a profitable entity.

One Mobikwik IPO Promoters & Shareholding of the Company

Bipin Preet Singh and Upasana Rupkrishan Taku are the main promoters of the company holding 19.26% and 13.09% stakes respectively in the One Mobikwik.

As per the Mobikwik draft red herring prospectus (DRHP) filed with SEBI, the other non-promoters group shareholders are Bajaj Finance Limited, Peak XV Partners Investments  IV and Net1 Applied Technologies Netherlands B.V. having 13.44%, 13.06% and 10.47% holdings respectively in the company. For other shareholders' details, check the table below.

S. No. Name of the Shareholder Number of Equity Shares Held % of pre-Issue share capital on a fully diluted basis*(%)
  Promoters:    
1 Bipin Preet Singh 11,430,478 19.26%
2 Upasana Rupkrishan Taku 7,770,483 13.09%
3 Narinder Singh Family Trus 210,762 0.36%
4 Koshur Family Trust 149,205 0.25%
  Total (A) 19,560,928 32.96%
       
  Other Shareholders:
1 Bajaj Finance Limited 7,979,440 13.44%
2 Peak  XV  Partners  Investments  IV 7,749,321 13.06%
3 Net1 Applied Technologies Netherlands B.V. 6,215,620 10.47%
4 Tree Line Asia Master Fund (Singapore) Pte Ltd 2,311,220 3.89%
5 Sequoia Capital India Investment Holdings II 2,183,208 3.68%
6 Abu Dhabi Investment Authority 1,663,320 2.80%
7 Bennett, Coleman and Company Limited 1,505,079 2.54%
8 Cisco Systems (USA) Pte. Ltd 1,200,760 2.02%
9 American Express Travel Related Services Company, Inc 1,043,740 1.76%
10 Hindustan Media Ventures Limited 719,920 1.21%
11 GMO Global Payment Fund Investment Partnership 635,320 1.07%
  Total (B) 33,206,948 55.94%
   
  Grand Total 52,767,876 88.90%

Source: DRHP

As the entire issue is a fresh issue no one from the promoters or shareholders is selling their stakes in the company. Hence there is no offer-for-sale (OFS).

Why Invest in One Mobikwik IPO?

While investing in the One Mobikwik IPO check the competitive strength of the company that helps the company drive its business as well as revenue growth. At the same time also analyses the risk factors that are associated with the company while operating its normal course of business. There are various factors that affect the stock market or share price of the individual company. Right now we have highlighted the strengths and risk factors that you should check before investing in the IPO of One Mobikwik.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Competitive Strengths:

  • Over the past few years, the financial industry and online payment system in India have grown well. One Mobikwik Solutions has been able to spot trends early in the fintech industry and capture evolving consumer requirements allowing it to introduce simple-to-understand innovative products and grow our business at low costs.
  • Furthermore, with the growth of adaptation of digital payment among the new users, the company is also proactively working to increase its customer base and acquire new customers. The virtual platforms and mobile wallet users increasing giving growth opportunities for such companies.
  • As per the RedSeer Report, in Fiscal 2023, MobiKwik with one of the highest monetization diversification among digital payment platforms is capable of monetizing the payments platform by deploying a cross-sell engine early in the consumer and business lifecycle.
  • With the low customer acquisition cost (CAC) company has managed to acquire a large volume of consumers, consistently for years. And, between FY21 and FY21 company has acquired an average of approximately 18.99 million consumers per year.
  • In India, the company has become one of the largest digital financial products and services platforms in terms of registered users. As of Fiscal 2023, it also became one of the first companies to introduce many innovative products with the lowest employee costs to revenue ratios.
  • MobiKwik has tie-ups and integrated its online payment gateway system at all the popular and most widely used online platforms and retail outlets. From e-commerce merchants to large format point sale retail outlets, bill payment merchants, Peer-to-peer transfers (between wallet to bank) and UPI payments, the company has a presence everywhere.
  • As of Sep 30, 2023, 3.70 million physical stores and 0.11 million Online Merchants have used MobiKwik to accept payments through its payment modes. The company has acquired enterprise Merchants (e-commerce and physical retail) via business development efforts.
  • In FY23, MobiKwik distributed Rs 4,102 crores worth of BNPL loans and has around 9-10% of the market share in the overall digital BNPL space, and Rs 1012.2 worth of long-term credit.
  • To enhance its flagship product MobiKwik ZIP, the company has partnered with Lending Partners such as scheduled banks and non-banking financial companies to distribute credit products to its consumers and all such products provided by the Lending Partners are on their books.

 

Risks Factors:

  • In FY23,Mobikwik with 14 crore registered users, faced stiff competition from three payment banks PhonePe, Paytm and Airtel’s payment bank who have 50 crore, 30 crore and 15 crore registered users respectively.
  • Over the past years company has managed to acquire a significant number of customers, but in the first half of FY24its customer acquisition cost, went very high at Rs 31.29, compared to Rs 20.30 in FY23. This will affect the profit margins of the company.
  • In FY23, MobiKwik disbursed around Rs 4,102 crores worth of BNPL loans to its customers, and its BNPL products are mainly dependent on its relationships with the lending partners, hence there is a huge amount of exposure to credit risk from its BNPL business.
  • As Mobikwik is involved in financial transaction-related services, hence, it has to comply with the rules and regulations regulated by the RBI. Failure to comply with such guidelines or irregularities in the transactions can be a challenging factor for the company.
  • The growth of the company is dependent on the technologically enabled devices, platforms and accessibility of such services through the Internet to end-users. Hence, the unavailability of such resources to the customers or the inability to keep pace with technological development to provide its online products and services to targeted customers can be a growth barrier for the company.
  • The company offers an online platform for its customers for financial transactions, and such transactions or platforms are also highly vulnerable to cyber security like viruses, malware and online frauds. Hence, such risks can affect the business of the company.
  • At the financial performance end, owing to negative EBITDA margins the company has incurred losses till FY23. Although in the first six months of FY24, it became marginally positive still there is a huge risk of incurring losses again with these thin operating margins.

One Mobikwik IPO Grey Market Premium (GMP)

The Grey Market Premium or GMP is the premium over the issue price of an IPO that is determined in the grey market as per demand and supply of shares. The grey market is an unofficial ecosystem where shares of unlisted companies start much before the listing and allotment of the shares. However, you can use the GMP as a speculative listing price.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

The GMP of One Mobikwik IPO is hovering around at Rs XXXX in the grey market. The GMP does not remain stable, it can increase or decrease depending on the demand for shares and the sentiments of the investors in the secondary market.

Hence, you should not consider the GMP only as the reliable factor to determine the share price of the unlisted company, as there are various factors that affect the stock market in India and the share price of individual listed companies that are considered.

Also Read: Why You Should Invest in the Stock Market: Reasons & Benefits

One Mobikwik IPO Review & Analysis

In the last three years, owing to incurring net losses in the business, the earnings per share (EPS) of the company remains negative. But now thanks to better operating margins, in the first half of FY24, the company has managed to register the profit, resulting in reporting an EPS of around 3.20 (annualized basis of FY24) that can be used for valuation.

However calculating the valuation of the share price of the Mobikwik IPO is not possible right now, as the issue price is not disclosed yet. Hence, comparing Mobikwik with its peer group companies like PayTM is also not possible. However comparing with its peer companies is also not fair, as all the similar companies don’t have the exact business model.

However, considering its financial performance in recent years and further scope of acquiring new customers in untapped rural areas, will help the company to grow its business. Hence, if the share price of theMobikwik IPOis issued at a very high premium, then you can avoid applying to the IPO or only invest with the long-term investment outlook. And if Mobikwik IPO is issued at a discounted price or available at a low valuation compared to its peer companies, then you can subscribe for the Mobikwik IPO with the listing gain or long-term outlook.

How to Apply for One Mobikwik IPO?

If you choose the best discount brokers in India like Moneysukh, you can easily apply in the One Mobikwik IPO or invest in any listed companies in the secondary market. You just need to open a trading account and demat account to apply in the IPOs, or do trading and investing in the stock market through the best trading platform at Moneysukh.

Also Read: Trading or Investing Which is Better and More Profitable

Here you will enjoy all the facilities and advantages of the best online trading app through the most advanced trading software or algorithms like Trade Radar, TradeTron, Quantman, AlgoBulls, Keev and FoxTrader with the best charting system TradingView to trade or invest in equities, commodities and forex market. Right now to apply for the Mobikwik IPO you can follow the steps given below.

Also Read: Things to Know Before Starting Forex Trading & How to Start

Steps to Apply for One Mobikwik IPO:

Step 1: Wait for the date One Mobikwik IPO to open for online bidding.

Step 2: Now browse the trade.moneysukh.com and log in with your User ID & password.

Step 3: Here you need to find the IPO section and click onOne Mobikwik IPO.

Step 4: Now just fill in the required details like price, quantity, and so on.

Note: While applying in any IPO, make sure to bid at the cutoff price before submitting your application. 

Step 5:Finally make the payment and then submit your IPO application successfully.

How to Check One Mobikwik IPO Allotment Status?

Apart from Moneysukh, you can also use stock exchange websites like BSE or NSE to check the One Mobikwik IPO allotment status. Checking the allotment status is possible only after the closing of the bidding and the basis of the allotment date arrives. You can use your PAN card details and IPO application number to check the Mobikwik IPO allotment status.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

However, if the IPO is oversubscribed in all the categories including retail and HNI, then there is less chance of getting the allotment of shares. But if you follow the investing tips while applying for in IPO, you can improve your chances of allotment in the IPO.

Also Read: How to Increase the Chances of IPO Allotment

If you have not been allotted any share, your IPO application money will be refunded into your bank account or the fund will be unblocked if applied through ASBA. If you have allocated any share in the allotment, then it will be transferred into your demat account before the listing that you can sell to book profits or keep from the long-term investment viewpoint.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

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