Mobikwik, one of India’s leading digital payment platforms, has launched its much-anticipated Initial Public Offering (IPO). Investors are keen to understand the potential for listing gains, its financial performance, and whether it’s a safe bet for long-term investment. Here’s a comprehensive analysis to help you make an informed decision.
Key Highlights of the Mobikwik IPO
- IPO Size: Approximately ₹1,900 crore
- Price Band: ₹1,025 – ₹1,100 per share
- Lot Size: 13 shares per lot
- Dates: December 11–13, 2024
- Listing: Expected on December 18, 2024at NSE and BSE
- GMP (Grey Market Premium): ₹40/share
- Subscription Rate: High interest with significant oversubscription.
- Retail Investors: Subscribed at a moderate level.
- Non-Institutional Investors (NIIs): Decent but less aggressive participation.
Financials and Growth:
- FY24 saw a ₹14.08 crore profit, signaling its first profitable year.
- Total income for FY24 was ₹890.3 crore, up significantly from ₹561.6 crore in FY23.
- Challenges in FY22 and FY23 included losses of ₹128.16 crore and ₹83.8 crore, respectively.
Future Plans:
- Funds raised will be directed toward enhancing AI/ML technology, payment infrastructure, and corporate growth. The IPO does not include an offer-for-sale component.
Analysis for Listing Gains and Investment Safety
- Short-Term Outlook: The current GMP suggests potential listing gains of about 14-15%. Market conditions and final subscription numbers could sway this.
- Long-Term Perspective: The move to profitability and increasing revenues are promising, but competition and regulatory risks remain
Listing Gains: What to Expect
Given Mobikwik’s brand reputation and growing user base, the market has significant buzz about potential listing gains. However, recent market volatility and lukewarm performances by tech IPOs could temper expectations. Depending on subscription levels and market sentiment, analysts predict a modest 10-15% premium on the listing day.
Mobikwik Financial Performance
The financials of Mobikwik provide a mixed picture:
| Metric | FY2022 | FY2023 | H1 FY2024 |
|---|---|---|---|
| Revenue (₹ Crore) | 536 | 707 | 375 |
| EBITDA (₹ Crore) | -117 | -79 | -29 |
| Net Loss (₹ Crore) | -128 | -97 | -44 |
| Active Users (Mn) | 101 | 123 | 135 |
While revenues have grown steadily, profitability remains elusive. The company has been investing heavily in user acquisition and technology upgrades. Improving EBITDA margins in recent quarters indicates a path toward operational efficiency.
Strengths of Mobikwik
- Strong Market Position: Mobikwik is a prominent player in India’s burgeoning digital payments ecosystem.
- Diverse Revenue Streams: Revenue from wallet services, BNPL (Buy Now Pay Later), and payment gateways.
- Large Customer Base: Over 135 million users and 3 million merchants.
- Government Push for Digitalization: Favorable policies could drive growth.
Risks and Concerns
- Profitability Challenge: Persistent losses and high cash burn rate.
- Competition: Fierce competition from Paytm, PhonePe, and Google Pay.
- Regulatory Risks: Stringent regulations on data privacy and fintech operations.
- Market Sentiment: Weak global tech stock performance may impact its valuation.
Is Mobikwik a Safe Investment?
- Short-Term View: Investors looking for listing gains might find moderate returns, but it’s not guaranteed.
- Long-Term Perspective: Mobikwik’s growth potential hinges on its ability to scale profitably and fend off competition. The BNPL segment, in particular, shows promise, but risks remain.
Expert Recommendations
- For Risk-Averse Investors: Consider avoiding or allocating a small portion of your portfolio.
- For Aggressive Investors: You may take a calculated risk, keeping an eye on financial improvements and sectoral trends.
- Alternative Options: Evaluate other fintech stocks with stronger fundamentals and profitability.
How To Check Mobikwik IPO Allotment?
To check the allotment status for the Mobikwik IPO, follow these steps:
1. Visit the Official Registrar’s Website
Mobikwik IPO allotment will be managed by its registrar, typically a company like KFintech or Link Intime. Check the specific registrar managing this IPO. For instance:
- KFintech: kfintech.com
- Link Intime: linkintime.co.in
2. Steps to Check Allotment
a. Navigate to the IPO allotment page on the registrar’s website.
b. Select “Mobikwik IPO” from the dropdown menu of active IPOs.
c. Enter your details: – PAN (Permanent Account Number)
– Application Number, or
– DP/Client ID (if applied via Demat account).
d. Complete the CAPTCHA verification.
e. Click on Submit to view your allotment status.
Mobikwik IPO Allotment Through Stock Exchange Websites
Alternatively, allotment status can be checked on the websites of stock exchanges like NSE or BSE:
- Visit NSE or BSE.
- Look for the IPO Allotment link under “Investors Services.”
- Provide the required details and check the status.
Mobikwik IPO Allotment Through Your Broker Account
- Log in to your broker account (e.g., Zerodha, Upstox, or ICICI Direct).
- Check the IPO section to see if shares have been credited to your Demat account.
Mobikwik IPO Allotment Email or SMS Alerts
- The registrar will typically notify investors via email or SMS about the allotment results. Ensure your contact details are updated.
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Conclusion
MobiKwik IPO offers a mix of opportunity and risk. While the company has strong growth potential, it’s important to weigh its profitability challenges and competitive pressures. As with any IPO, thorough research and a clear investment strategy are essential.
Stay tuned for further updates and insights on Mobikwik’s IPO performance and market trends.