Mobikwik IPO to Open Today
On December 11, 2024, One Mobikwik Systems Limited is scheduled to make its much-anticipated initial public offering (IPO) to the Indian primary market. According to sources, shares of fintech giant MobiKwik are trading almost 40% higher on the grey market from the upper end of the price range of INR 265 to INR 279 ahead of the start of the company's initial public offering (IPO). On December 8, MobiKwik shares were trading at INR 391 per, according to Investor Gain. On December 11 and 13, the company's first public offering (IPO) will open and close. Brokers' optimistic assessments of the IPO may have contributed to the price spike in the grey market. With a long-term outlook, Bajaj Broking advised investors to subscribe to MobiKwik's IPO. According to the brokerage's IPO note, MobiKwik intends to expand its operations into other markets, which could increase its earnings in the upcoming years.
Reducing IPO Size
Additionally, Kotak Securities has praised the company's decision to reduce the size of the IPO, stating that it is an appealing investment opportunity. The smaller IPO size and targeted funding allocation show strategic intent. According to Kotak, if handled carefully, the IPO could position MobiKwik as a pioneer in defining the direction of digital finance. In an attempt to raise INR 572 Cr, MobiKwik submitted their red herring prospectus last week. It had previously been approved by market watchdog SEBI to raise INR 700 Cr through its initial public offering. Only a new issue of shares is included in the public offering. Additionally, the business reduced its 2021 valuation of roughly $1.5 billion to $1.7 billion to about $255 million for its IPO.
Current Financial Situation of MobiKwik
According to Bipin Preet Singh, the founder and CEO of MobiKwik, it is disheartening for investors when an initial public offering (IPO) with a high value underperforms after listing. People think they are horrible companies that spend a lot of money, but someone needs to change that. "We don't mind if it means receiving a lower valuation," he stated. MobiKwik, on the other hand, turned a profit in FY24 but went into the red in the first quarter of 2024–25 (Q1 FY25). Compared to a net profit of INR 3 Cr in the same quarter last year, it reported a net loss of INR 6.6 Cr in Q1 FY25. During the reviewed quarter, operating revenue was INR 342.2 Cr. Compared to the previous fiscal year's net loss of INR 83.19 Cr, MobiKwik reported a net profit of INR 14.1 Cr in FY24. Operating revenue increased from INR 539.5 Cr in FY23 to INR 875 Cr, a 62% increase.
Nitin Konde
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