MobiKwik IPO GMP Surges to 40% Ahead of Launch: Check Subscription Details, Price Band, and Listing Info

As MobiKwik prepares for its Upcoming (IPO), the exhilaration within the marketplace is palpable and seems undeniable. The MobiKwik IPO is about to open for public subscription on December 11, 2024, and the grey market premium (GMP) has surged to an impressive 40% prior anticipation to the launch. . This surge in GMP presents a sturdy investor interest and investors’ confidence in the company's growth opportunities. In this article, we will delve into the information about the MobiKwik IPO, which includes the subscription info, MobiKwik IPO price band details, and listing statistics along with IPO schedule details.

MobiKwik's Journey to IPO

MobiKwik, a prominent digital payment & fintech platform in India, has shown a remarkable surge even after such setbacks and made significant progress since its inception in 2009. The company gives various services, which include mobile wallets, payment gateways, and financial services. Over the years, MobiKwik has constructed a robust customer user base and a strong merchant network, positioning itself as a key participant within the fintech landscape. The decision to move public marks a sizable milestone in the company's journey, providing it with the capital and funds needed to support its next phase of growth ahead.

MobiKwik’s long journey to its IPO highlights the evolving dynamics of India’s fintech landscape. Earlier valued at $1 billion, the company now seeks to achieve a $250 million valuation—a 73% drop from its peak. This scaled-back adjusted valuation and reduced issue size reflect an approach formed through market realities, prioritizing sustainability over competitive increase. The company's digital credit segment, developing at a spectacular pace (404% in FY22, 238% in FY23), underscores its pivot toward profitability and diversification in financial services—a move essential in the present fintech landscape.

Initially aiming for a subsequent ₹1,900 crore public offering in 2021, the organisation encountered several major hurdles, such as market volatility and regulatory challenges, which caused the withdrawal of its initial IPO plans. However, Mobikwik's resilience and strategic pivot had been noteworthy. The enterprise redirected its focus toward its efforts on reaching profitability and improving its technological infrastructure, which has aligned it favorably for a successful IPO. This roller-coaster journey underscores Mobikwik's adaptability and dedication to long-term growth, making its upcoming IPO a pivotal event in the fintech sector. 

The revised IPO, reduced to ₹572 crore and slashed down with updated RHP, demonstrates Mobikwik's realistic strategy in the current market condition. The funds raised would be strategically allocated to broaden its financial offerings, improve payment methods & solutions, and invest in advanced technologies such as AI and machine learning.

Grey Market Premium (GMP) and Investor Sentiment

The MobiKwik IPO has created significant excitement and buzz in the grey market, with the GMP surging to 40% in ahead of the public launch. At present, the MobiKwik unlisted share price in the grey market stands at ₹390, reflecting a premium of ₹132 per share against the upper price end of the MobiKwik IPO price band of ₹279. This sturdy GMP shows robust demand and quite positive investor sentiment among investors regarding the IPO. Investors are positive and seem optimistic about MobiKwik's potential surge in growth attributed to its progressive product offerings and expanding market presence. The mobikwik share price currently in Pre-IPO market is trading at ₹ 655 making it overvalued. 

Subscription Details and Price Band

The MobiKwik IPO plans to raise ₹572 crore this time through a fresh issue of shares. The IPO shares would be available at a MobiKwik IPO price band of ₹265 to ₹279, having a minimum lot size of 53 shares. Retail investors can make a minimum bid for at least 53 shares and bids can be made in multiples of this lot size, with a maximum bid of up to 13 lots, amounting to 689 shares. The IPO's subscription window is scheduled to open from December 11 to December 13, 2024.

Key Dates and Listing Information

The basis of allotment for the Mobikwik IPO is predicted to be completed after the subscription days of IPO which is on December 16, 2024. The applicants would receive the allotted shares being credited to demat accounts by December 17, 2024 The upcoming Mobikwik initial public offering will mark listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 18, 2024. After observing the obstacles in the path to going public, the company finally marks its debut in the public market providing the opportunity to potential investors significant returns and expanding itself in the fintech landscape. 

Objectives of the IPO

According to the Red Herring Prospectus (RHP), MobiKwik plans to make good use of the net IPO proceeds from the IPO to fund organic growth in its financial services and payment services business groups. The enterprise aims to invest in research and development in data, machine learning (ML), artificial intelligence (AI), and technology to enhance its product services and drive innovation with improved operational efficiency. Moreover, MobiKwik looks to allocate funds for capital expenditure in its payment devices business, referring to different platform sources for investment and for general corporate purposes as well. 

Competitive Landscape and Growth Prospects

MobiKwik works in a dynamic environment company that makes a competitive fintech panorama, dealing with stiff and fierced competition from leading players like Paytm, PhonePe, and Google Pay. However, the corporation's efforts and focus on innovation and client-centric solutions have helped it carve out a gap in the market. MobiKwik's digital credit segment has shown a dazzling increase, with a 404% surge in FY22 and 238% in FY23. This growth underscores the company's potential to adapt to constantly changing market dynamics and capitalize on emerging opportunities.

MobiKwik's Financial Performance

MobiKwik's overall financial performance has been a key driving source of investor interest in the upcoming IPO which witnessed a surge dramatically. The company has demonstrated a strong revenue increase, pushed by its increasing user base and increasing transaction volumes. In FY24, MobiKwik highlighted a revenue of ₹890 crore, up 58% as compared to ₹561 crore in FY23. The corporation's attention to profitability and cost optimization has also resulted in improved margins, positioning it properly for sustainable growth in the future.

Risks and Challenges

Investing in MobiKiwik also comes with its risks, while on paper, it appears like an attractive investment opportunity. Regulatory change risk and market volatility are inherent in doing business in the fintech industry and that could impact the operations and financials of MobiKwik. Furthermore, the firm competes against resource-endowed competitors and that puts its market share and the horizons of its growth strategies at risk. Investing in MobiKiwik requires careful consideration of these risks and other caveats.

Conclusion

MobiKwik's IPO is a remarkable achievement for the company and for the whole Indian fintech spectrum. The strong expectations of premium multiples and positive investor sentiments indicate that there is confidence towards the growth and strategy of the company. With their vision development advancing the company in terms of digital payments as well as other aspects of Financial Services, they are in a good position to take advantage of the growth to follow. The fact that the company has suffered a few setbacks and managed to bounce back stronger indicates that MobiKwik is poised to become a force to be reckoned with in the fintech industry, and for this reason, all investors focusing on the IPO should not miss the chance. With the launch of the IPO for subscription, the investors will be following the developments closely and will be looking out for MobiKwik’s subscription to be a part of its growth story.