One MobiKwik Systems, whose initial public offer (IPO) got subscribed multiple times (7 times) on Day 1 itself, saw its grey market premium (GMP) rising further on strong retail and HNI responses. Last heard, One MobiKwik Systems was commanding a GMP of Rs 156 against Rs 149 on Wednesday, Rs 136 on Tuesday and Rs 130 on Monday, suggesting huge investor interest. The prevailing GMP is 55.91 per cent higher than Rs 279, the higher limit of the price band Rs 265-279.
Data showed retail individual investors (RIIs) bade for 8,85,53,725 shares, which was 41.03 times the reserved quota of 21,58,490 shares. The quota reserved for non institutional investors (NIIs), which includes HNIs, was subscribed 16 times.
Analysts are neutral-to-positive on the Rs 572-crore IPO. "One Mobikwik Systems is well-positioned in India’s fintech sector with scalable operations, profitability, and strong consumer loyalty, reflected in its low CAC of Rs 32.87 and 90.3 per cent repeat usage rate. The company reported Rs 875 crore in revenue and Rs 14 crore net profit in FY24, with a 4.2 per cent Ebitda margin, highlighting operational efficiency compared to peers like Paytm," Nirmal Bang said.
With an attractive valuation at 2.3 times EV/Sales the company is well-positioned for future growth, it said while recommending 'subscribe' to the issue.
SMC Global gave it two out of five stars. In comparison to its peers like PhonePe, Paytm, and PayPal, MobiKwik significantly lags in registered user base and diversified service offerings, said KRChoksey Shares and Securities.
While the company has carved out a niche in ZIP and ZIP EMI offerings, with a growing Financial Services vertical and a low CAC/user, the company is poised to build and attract a bigger pie, it said.
"The post issue Price to sales of 2.5 times seems reasonable compared to it’s peers. Considering these factors, we assign a 'subscribe' rating to MobiKwik IPO," KRChoksey Shares and Securities said.
Anand Rathi said the IPO is richly priced and recommended "Subscribe for long term” rating to the IPO. It noted that the company reported losses for the June quarter due to prefunding cost adjustment provisions.
The IPO will conclude on December 13, Friday. The basis of allotment is likely by December 16, credit of shares by December 17 and listing by Wednesday, December 18.