MobiKwik launches ₹572 crore IPO today — What should investors do? – CNBC TV18
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Ahead of the IPO, MobiKwik raised ₹257 crore from Anchor investors, which included the likes of White Oak Capital, 360 One Asset, Axis MF, SBI MF among others.
Price band for the IPO has been fixed between ₹265 to ₹279 per share.
Mobikwik plans to use these funds for growth, expansion and R&D.
Should you subscribe to the issue or is it an avoid? Here is what some analysts had to say:
KRChoksey Research has a “Subscribe” rating on the IPO.
It said that MobiKwik has strategically shifted towards higher-margin financial services, capitalising on its established payment user base to drive the transition.
However, MobiKwik lags significantly in registered user base and diversified service offerings in comparison to peers like PhonePe, Paytm and PayPal, although it has carved out a niche in ZIP and ZIP EMI offerings.
The post-issue price-to-sales multiple of 2.5x though, appears reasonable to the brokerage, compared to its peers.
Anand Rathi has a “subscribe for the long-term” rating for the MobiKwik IPO.
The brokerage said that MobiKwik is preparing to introduce additional services like investments and insurance to establish itself as a comprehensive digital platform for financial services, which can boost future revenue and profits.
MobiKwik though, reported losses in the June quarter of the current financial year due to pre-funding cost adjustment provisions.
It advises investors to subscribe for the long term as the issue is “richly priced.”
AUM Capital also advises investors to apply to the IPO for a Long-term perspective.
It said that MobiKwik presents a compelling investment opportunity supported by its revenue growth and strong market positioning.
With the fintech industry in India projected to grow significantly due to the increased digital adoption, MobiKwik, according to AUM Capital, is well positioned for futhre growth.
Market-cap-to-sales ratio at 2.43 times its financial year 2024 revenue, which is lower than the industry ratio of four times.
