Mobikwik is a fintech firm that is among of India’s leading mobile wallets and Buy Now Pay Later (BNPL) providers. By mixing the ease of regular mobile payments with the advantages of BNPL, they want to meet the unmet credit requirements of the rapidly expanding online paying consumers. Mobikwik IPO will hit the market in September 2021.
Table of Contents
About Mobikwik
They began business as a mobile wallet in 2009, formed by Bipin Preet Singh and Upasana Taku to facilitate digital payments simple for their consumers.
Bill payments, online shopping, food delivery, fuel pumps, major retail chains, pharmacies, kirana shops, and more utilize cases have subsequently been added to their list.
Peer-to-peer payments via universal payment interface (“UPI”), MobiKwik Wallet, and MobiKwik Wallet to bank payments are also possible on their platform.
Zaakpay
In 2012, they launched their payment gateway subsidiary Zaakpay to further strengthen their value proposition to their online businesses.
Zaakpay allows online businesses and mobile apps to accept payments from their customers using a variety of methods, such as debit cards, credit cards, mobile wallets, UPI, and net banking.
MobiKwik Zip
MobiKwik Zip, their flagship BNPL solution, was introduced in May 2019 with a target on the Indian middle-class audience to allow them to initiate payments for everyday use cases.
MobiKwik Zip aims to provide this under-served Indian people their first taste of credit.
Mission
They are a technology-first business that uses big data analytics and deep data science (especially machine learning) to satisfy their platform’s customers and merchants.
Their goal is to provide India with a world-class payment and credit solution!
Competitive Advantage and Business Model
The capacity to (1) cross-sell; (2) use data science and technology; and (3) efficiently manage risk are three of their main competitive advantages, according to them.
BNPL’s consumer payments business is the cornerstone of the company. It serves as the top of the channel for acquiring new users that come to their site to make everyday payments.
With MobiScore, the data provided by these users via their transactions is used to analyse risk and underwrite BNPL.
Their merchant network also assists BNPL in increasing user interaction and cross-selling their payment gateway (Zaakpay).
Growth strategy
Their BNPL section benefits from their client payments section (MobiKwik Wallet), which includes brand memory, a huge current KYC user base, massive data to assess customer creditworthiness, and a significant merchant ecosystem.
They think they have a solid foundation to expand the BNPL company in a scalable and successful way as an outcome of the essential building pieces being in place.
In Fiscals 2020 and 2021, they were profitable at the BNPL division results level (i.e. revenue minus direct costs).
Mobikwik IPO
Mobikwik, headquartered in Gurugram has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1900 crore on 12 July, 2021.
They planned to collect INR 1900 cr via its initial public offering (IPO). There is a fresh issue of 1500 cr. and offer for sale is around 400 Cr. Value Equity Shares mentioned in the drhp of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 423.14 | 337.94 | 335.08 | ||
| Total Revenue | 302.26 | 3,69.85 | 160.23 | ||
| Loss After Tax | (111.30) | (99.92) | (147.97) | ||
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | (22.18) | (22.18) | 3 |
| Financial Year 2020 | (20.45) | (20.45) | 2 |
| Financial Year 2019 | (31.01) | (31.01) | 1 |
| Weighted Average | (23.08) | (23.08) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The offer
The following are some of the qualitative considerations and Their strengths that go into determining the Offer Price:
- Network effects are significant, leading in growth across company verticals.
- A large, active user base with a modest cost of acquisition
- MobiKwik is a well-known retail name in India.
- A company model that focuses technology and products.
Mobikwik IPO Peer Comparison
There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs.
Mobikwik IPO Details
| IPO Opening Date | September 2021 |
| IPO Closing Date | September 2021 |
| Issue Type | Book Built |
| Face Value | 2 per share |
| IPO Price | 0 per equity share |
| Market Lot | 0 |
| Min Order Quantity | 0 |
| Listing At | BSE, NSE |
| Issue Size | 1900 Cr. |
| Fresh Issue | 1500 Cr. |
| Offer for Sale | 400 Cr. |
Mobikwik IPO Tentative Date
Mobikwik IPO opening date is September 2021, and the closing date September 2021. The issue may list in September 2021.
| IPO Open Date | September 2021 |
| IPO Close Date | September 2021 |
| Basis of Allotment Date | September 2021 |
| Initiation of Refunds | September 2021 |
| Credit of Shares to Demat Account | September 2021 |
| IPO Listing Date | September 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
Mobikwik IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Mobikwik IPO.
Mobikwik IPO GMP
Mobikwik IPO Grey Market Premium is INR 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 |
Mobikwik IPO Review
Mobikwik IPO Review will depend on Price band. Once the price band will be issued we will update the Review for this IPO.
Mobikwik IPO Risk
- The COVID-19 pandemic, as well as any future pandemic might have a significant and negative effect on their company and operations.
- If they are unable to acquire new customers or retailers, as well as keep and expand their current client or vendor connections, their business and results of operations would decline.
- Any possible exposure of or failure to otherwise secure individual sensitive, or confidential data, as well as cyberattacks against their system, might hurt their brand and substantially and negatively affect their business.
- In the fintech business, they face significant and growing competitiveness. Their business and financial situation will suffer if they are unable to compete successfully.
Other Threats
- In their respective auditors’ statements for Their annual report for Fiscals 2019, 2020, and 2021, as relevant, their Statutory Auditors and prior statutory auditors have included a qualifier, highlighting on matters, and a substantial doubt relating to going concern.
- Its finance needs and intended Net Proceeds deployment have not been evaluated by any bank, financial institution, or other independent body, and their management will have considerable discretion over how the Net Proceeds are used.
- They may not be able to continue their current growth rates, especially in their BNPL business, and past success may not be predictive of future results.
Mobikwik IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Mobikwik IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| September 2021 | 1 | |||||
| September 2021 | 2 | |||||
| September 2021 | 3 |
Promoters
- Bipin Preet Singh
- Upasana Rupkrishan Taku
- Koshur Family Trust
- Narinder Singh Family Trust
Promoter’s Holding
| Pre Issue Share Holding | 34.52% |
| Post Issue Share Holding |
Mobikwik IPO Prospectus
Contact Details
One Mobikwik Systems Limited
5th Floor, HUDA City Centre, Metro Station, Sector 29,
Gurugram, Gurgaon, Haryana, 122 001
Tel.: +91 (124) 640 9190;
E-mail : [email protected]
Website: www.mobikwik.com
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Lead Manager(s)
- ICICI Securities Limited
- BNP Paribas
- Credit Suisse Securities (India) Private Limited
- IIFL Securities Limited
- Jefferies India Private Limited
We hope we are able to answer all your questions about Mobikwik IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is Grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Mobikwik IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Mobikwik IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Mobikwik IPO Opening Date?
Mobikwik IPO will open in September 2021.
Mobikwik IPO Listing Date?
Mobikwik IPO will list in September 2021.
Mobikwik IPO GMP Today?
Mobikwik IPO Grey Market Premium is INR 0.
Mobikwik IPO Allotment Date?
Mobikwik IPO basis of allotment will be in September 2021.
Lot size for Mobikwik IPO?
Lot size for IPO is 0.
