Tue Dec 10 07:51:36 UTC 2024: ## MobiKwik IPO Opens December 11th, Trading at Significant Grey Market Premium

**Mumbai, India – October 26, 2024** – Digital payments platform MobiKwik (One MobiKwik Systems Limited) is set to launch its Initial Public Offering (IPO) on December 11th, 2024, for retail investors. The IPO, initially planned for a much larger size, has been reduced to ₹572 crore (approximately $69 million USD), with a price band of ₹265-₹279 per share. At the upper price band, the company’s market capitalization would be ₹2165 crore. The offer will close on December 13th, with allotment on the 16th and listing on the 18th.

The IPO is generating significant buzz in the grey market, where MobiKwik’s unlisted stock is trading at a premium of ₹130, representing a 47% premium over the upper price band. This suggests a potential listing price of ₹409, significantly higher than the IPO price.

Bajaj Broking has recommended a long-term subscription, citing MobiKwik’s digital payment solutions, “Buy Now Pay Later” product, and diversification into financial services as potential growth drivers. The company plans to use the IPO proceeds for organic growth in financial services (₹150 crore), expansion of payment services (₹135 crore), R&D in AI and machine learning (₹107 crore), and capital expenditure on payment devices (₹70.2 crore).

Founded by Bipin Preet Singh and Upasana Taku, MobiKwik boasts 161.03 million users and 4.26 million merchants (as of June 30, 2024). It offers digital credit, investment, and insurance products. The company reported revenue of ₹875 crore in FY24, a significant increase from the previous year, and turned a profit of ₹14.08 crore after incurring a loss in FY23.

Despite the positive outlook, Bajaj Broking notes inherent risks, including potential security breaches and the company’s ability to maintain growth levels across its financial services business. Investors are advised to conduct thorough due diligence before investing. (Disclaimer: Investment advice provided by Bajaj Broking; this is not a recommendation from this news outlet. Market risks apply.)

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