Mobikwik IPO day 3: GMP, subscription status and review. Should you apply? | Stock Market News

Mobikwik IPO day 3: The initial public offering (IPO) of One MobiKwik Systems is witnessing strong investor interest. The ₹572 crore book-built issue, which is entirely a fresh issue of 2.05 crore shares, opened for subscription on Wednesday, December 11, and to conclude on Friday, December 13. By the end of the second day of subscription, the mainboard IPO had already been subscribed 20.41 times.

Mobikwik IPO GMP

According to market sources, the latest grey market premium (GMP) of Mobikwik IPO is ₹150. With the issue’s upper price band of ₹279, and considering the current GMP, the estimated listing price of Mobikwik shares is ₹429, a premium of nearly 54 per cent.

Mobikwik IPO subscription status

BSE data shows retail and non-institutional investors (NIIs) have lapped up the IPO. By the end of Thursday- the second day of subscription – the issue had seen an overall subscription of 20.41 times, receiving bids for 24,23,45,574 shares against 1,18,71,696 offered. The segment reserved for retail investors had been subscribed 64.65 times, NIIs’ portion was booked 30.07 times, and qualified institutional buyers (QIBs) subscribed to the issue 0.84 times.

Mobikwik IPO details

The IPO is priced at ₹265 to ₹279 per equity share. The company aims to raise ₹572 crore from this entirely new public issue, which it intends to use to expand its business and invest in data, ML (machine learning), AI (artificial intelligence), products and technology.

Bidders can apply in lots, and one lot of the public issue will comprise 53 company shares. So, the minimum amount of investment for retail investors is ₹14,787.

SBI Capital Markets and DAM Capital Advisors have been appointed lead managers of the public issue. Link Intime India Private Limited has appointed this public offer’s official registrar.

The company is expected to finalise the share allotment on Saturday, December 14. In case of any delay, the announcement of share allotment can be expected on 16 December 2024. The shares of the company may list on the BSE and the NSE on December 18.

Mobikwik IPO review

Mobikwik is a fintech company that offers prepaid digital wallets and online payment services.

As analysts of Geojit Financial Services observed, by May 2024, Mobikwik had captured a 23.11 per cent market share in the prepaid payment instruments (PPI) wallet segment by gross transaction value, making it the largest wallet provider in India. The company has a vast reach, covering 99 per cent of India’s pin codes.

Geojit Financial Services has a subscribe rating on the issue due to its reasonable valuation.

“At the upper price band of ₹279, Mobikwik is available at m-cap-to-sales of 2.5 times (on FY24 financials), which appears to be reasonably priced. We assign a ‘subscribe’ rating for the issue on a long-term basis, considering its strong brand recall, diversified offerings, rapid scaling, consistent innovation, customer stickiness and promising industry outlook,” said Geojit.

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