One MobiKwik Systems IPO ends with 119.38x subscription

The offer received bids for 141.72 crore shares as against 1.18 crore shares on offer.

The initial public offer (IPO) of One MobiKwik Systems received 1,41,72,86,992 bids for shares as against 1,18,71,696 shares on offer. The issue was subscribed 119.38 times.

The Retail Individual Investors (RIIs) category was subscribed 134.67 times. The Qualified Institutional Buyers (QIBs) category was subscribed 119.50 times. The Non-Institutional Investors (NIIs) category was subscribed 108.95 times.

The issue opened for bidding on Wednesday (11 December 2024), and it closed on Friday (13 December 2024). The price band of the IPO was fixed between Rs 265 and 279 per share.

 

The initial public offer (IPO) consisted of a fresh issue to raise Rs 572 crore through the issuance of 2.16 crore equity shares at the lower band of Rs 265 per share (face value Rs 2 per share) and 2.05 crore equity shares at the upper band of Rs 279 per share.

The company plans to use Rs 150 crore from the net proceeds of the fresh issue to provide default loss guarantees (DLG) to lending partners. Starting June 2023, the DLG guidelines require lending service providers (LSPs) to offer a guarantee of up to 5% of the disbursed amounts on loan portfolios of regulated entities (RE).

The company plans to allocate Rs 35 crore to pre-fund escrow and biller accounts for instant settlements to consumers and merchants, and Rs 100 crore for acquiring new consumers in the digital payments ecosystem. Additionally, Rs 27.8 crore will be used to enhance teams in data, ML, and AI, while Rs 79.2 crore will strengthen product and technology teams.

The company plans to invest Rs 70.285 crore in hardware, including POS machines and sound boxes, to strengthen its network of consumers and merchants.

The promoter shareholding in the company would dilute to 25.2% post-IPO from 34.2% pre-IPO.

Ahead of the IPO, One Mobikwik Systems on Tuesday, 10 December 2024, raised Rs 92.25 lakh from anchor investors. The board allotted 257.40 crore shares at Rs 279 each to 21 anchor investors.

MobiKwik Systems, incorporated in 2008, is a leading fintech company in the digital financial services and payments space, with a 50-50 revenue mix for Q1 FY2025. Initially launching the MobiKwik Wallet, the company has since expanded its offerings to include credit services (MobiKwik ZIP, ZIP EMI), digital payments (MobiKwik Wallet, Zaakpay, UPI), and P2P lending (MobiKwik Xtra). The company leverages big data analytics and machine learning to continuously serve users and merchants on its platform.

The company's registered users grew at a CAGR of 12.31% from FY2022 to FY2024, reaching 155.84 million, and further increased to 161.03 million by June 2024. As of June 30, 2024, MobiKwik enabled 4.26 million merchants to accept payments both online and offline. It is the largest wallet player in India, holding a 23.11% market share of the PPI wallet gross transaction value (GTV). The companys Payment GMV grew at an annual rate of 45.88%, while MobiKwik ZIP GMV (disbursements) grew at 112.16% annually from FY2022 to FY2024.

The firm reported a consolidated net loss of Rs 6.62 crore and income from operations of Rs 342.27 crore for the three months ended on 30 June 2024.

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