One MobiKwik IPO Subscribed 7.32 Times On Day 1

The initial public offering of One MobiKwik Systems Ltd. was subscribed 7.32 times as retail investors continued to pour into the issue. The price band is Rs 265 to 279 per share.

The Gurugram-based company plans to raise Rs 572 crore comprising only a fresh issue. The offer size has been reduced from Rs 700 crore since the company filed its draft red herring prospectus with the market regulator.

The IPO-bound company raised Rs 257 crore from anchor investors on Tuesday ahead of the launch of its initial public offering a day later.

Bids can be made for a minimum lot of 53 shares or in multiples thereof. Following the public issue, shares of One MobiKwik will be listed on the NSE and the BSE.

SBI Capital Markets Ltd. and DAM Capital Advisors Ltd. are the book-running lead managers to the issue.

• Issue opens: Dec.11.

• Issue closes: Dec.13.

• Issue price: Rs 265-279.

• Fresh issue: Up to Rs 572 crore.

• Offer for sale: Nil.

• Lot size: Minimum of 53 shares and then in multiples thereafter.

Of the total amount, Rs 150 crore will be used for funding organic growth in financial services, Rs 135 crore in payment services and Rs 107 crore for research and development investment in data, machine learning and artificial intelligence and product and technology.

The remaining Rs 70.28 crore will be used towards capital expenditure for its payment devices business and general corporate purposes.

MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments and insurance. It was founded by Bipin Preet Singh and Upasana Taku.

One MobiKwik Systems wants to get a 10% market share in the entire UPI ecosystem, according to Co-Founder Bipin Preet Singh.

The IPO-bound fintech posted a profit of Rs 14.1 crore in the financial year-ended March 2024 compared to a loss of Rs 83.8 crore in the fiscal 2022-23. The company posted a revenue from operations of Rs 875 crore in FY24, versus Rs 540 crore in the fiscal 2023. The improved performance came with a better Ebitda profit of Rs 37.2 crore, compared to an Ebitda loss of Rs 55.9 crore.

The IPO was subscribed 7.32 times, as of 5:00 p.m. on Wednesday.

• Qualified institutional buyers: 0.2 times or 2%.

• Non-institutional investors: 8.98 times

• Retail investors: 26.75 times.

The grey market premium of One MobiKwik Systems IPO was Rs 136 as of 5:00 a.m. on Wednesday, according to InvestorGain. This implies shares of the company will likely list at Rs 415 apiece, indicating a 48.75% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids