One Mobikwik Systems Limited is set to launch its Initial Public Offering (IPO). The IPO will comprise a fresh issue of 2.05 crore equity shares. The total size of the offer is expected to reach Rs. 572 crore. The shares will be listed on both the BSE and NSE stock exchanges, with the IPO opening on December 11, 2024, and the issue closing on December 13, 2024. Let’s begin!
GMP of One Mobikwik Systems
The shares of One Mobikwik Systems Limited’s price in the grey market were trading at a 48.75 percent premium as of December 11th, 2024. The shares in Grey Market traded at Rs 415. This gives it a premium of Rs. 136 per share over the cap price of Rs. 279.
Overview of One Mobikwik Systems
One Mobikwik Systems Limited was founded in 2008 and is a leading fintech company revolutionizing digital payments and financial services in India. With innovative solutions like prepaid digital wallets, UPI payments, and Buy Now, Pay Later (BNPL) options, the company serves over 161.03 million users and 4.26 million merchants to transact seamlessly online and offline as of June 30, 2024.
MobiKwik’s offerings, including MobiKwik ZIP, ZIP EMI, and Merchant Cash Advance, leverage digital public infrastructure to simplify payments and enhance financial inclusion. The company supports diverse payment needs, such as bill payments, QR-based transactions, and merchant services through devices like MobiKwik Vibe and EDC Machines.
The company is known for its consumer-centric approach and integrates advanced technology with strategic partnerships to deliver accessible and flexible solutions. With a robust trademark portfolio and a strong technology workforce, MobiKwik is at the forefront of India’s fintech innovation, providing secure, efficient, and inclusive financial services.
Promoters of One Mobikwik Systems
The promoters of One Mobikwik Systems include Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust. They hold significant stakes and provide strategic direction to the company.
The IPO consists only of a fresh issue, with no offer for sale (OFS) by existing shareholders or promoters.
Lead Managers of One Mobikwik Systems
SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO. Link Intime India Private Limited serves as the registrar.
Objectives of One Mobikwik Systems IPO
The primary objectives of the One Mobikwik Systems IPO are:
- To fund organic growth in the financial services business of Rs. 150 crore
- To fund organic growth in the payment services business of Rs. 135 crore
- To research and development in data, ML and AI, and product and technology of Rs. 107 crore
- To meet capital expenditure for the payment devices business of Rs. 70.29 crore
- To support general corporate purposes.
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Financial Analysis of One Mobikwik Systems
One Mobikwik Systems Limited’s revenue has increased from Rs 539.47 crore in FY23 to Rs. 875 crore in FY24, which has grown by 62.2 percent. The company has converted its net loss into net profit, from Rs. 83.81 crore in FY23 to Rs. 14.08 crore in FY24.
One Mobikwik Systems Limited’s revenue has grown at a CAGR of 28.85 percent over the last two years. The basic earnings per share of the company stood at Rs 2.46 as against Rs -14.66 recorded in the financial year 2023.
In the June quarter, the company earned revenue of Rs. 342.28 crore and a net loss of Rs. 6.15 crore. One Mobikwik Systems Limited has maintained an EBITDA margin of 4.18 percent in FY24. The company has a debt-to-equity ratio of 0.73x.
One Mobikwik Systems vs. Peers
One MobiKwik Systems is among a small number of uniquely positioned players in the payments and financial services industry. One MobiKwik Systems Limited’s total income for fiscal 2024 was Rs. 890.32 crore, and its basic EPS is to be 2.46. The company’s NAV (net asset value) per share is 28.43, and the return on net worth (RoNW) is 8.66 percent.
The company generates lower revenue compared to peers like Paytm and global players such as Affirm Holdings and PayPal Holdings. However, in the Indian market, it has a positive RoNW, unlike Paytm.
Strengths and Weaknesses of One Mobikwik Systems
Strengths:
- Established a brand with over 161 million users and 4.26 million merchants.
- Diversified revenue streams across payments and credit.
- Strong partnerships with banks and NBFCs.
- Focus on innovation, including Buy Now, Pay Later (BNPL) options.
- Scalable technology platform supporting future growth.
Weaknesses:
- Dependence on regulatory approvals for financial services.
- Competition from well-funded global and domestic players.
- High reliance on digital credit, subject to failure risks.
- Operating in a rapidly evolving fintech industry with potential technological disruptions.
Conclusion
The One Mobikwik Systems IPO offers investors an opportunity to invest in one of India’s leading fintech companies. With strong growth prospects, profitability improvements, and a solid user base, the company is positioned for future success. However, potential investors should consider risks such as regulatory dependencies and competitive pressures before investing.
Written By – Nikhil Naik
Disclaimer
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