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The Mobikwik Systems Limited IPO garnered strong demand on the first day of the bidding process; Should you buy on Day 2?
MobiKwik IPO Day 2
MobiKwik IPO Subscription Day 2: The Mobikwik Systems Limited IPO garnered strong demand on the first day of the bidding process. It was fully subscribed within the first hour of opening. By the end of the first day, the IPO was subscribed 7.31 times. According to exchange data, 8.67 crore shares were bid for against 1.18 crore shares on offer.
MobiKwik Systems said on Tuesday that it had garnered Rs 257 crore from anchor investors ahead of its initial public offering (IPO). Foreign and domestic institutions who participated in the anchor round included Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC Mutual Fund (MF), Axis MF, SBI MF and SBI General Insurance, according to a circular uploaded on BSE’s website.
The IPO is open for subscription starting December 11, 2024, in the Indian primary market. The fintech company has set the price band for the Mobikwik IPO between Rs 265 and Rs 279 per share. The IPO subscription period will run from Wednesday to Friday, December 11 to 13, 2024.
Mobikwik IPO Subscription Status: The initial public offering (IPO) of One MobiKwik Systems was subscribed 7.3 times on Wednesday, on the first day of offer. Institutional investors subscribed to the issue by 2 per cent, high net worth individuals (HNI) by 9 times, and retail investors by 26.7 times.
Mobikwik IPO GMP Today: As for the GMP, the shares of the company are trading at a premium of about 50 percent.
The Grey Market Premium (GMP) refers to the unofficial market price of a company’s shares before they are listed on the stock exchanges, typically during an IPO (Initial Public Offering). It reflects the price at which the shares of an upcoming IPO are being traded in the grey market, which is a market that operates outside the formal stock exchanges.
GMP is used by traders and investors to gauge the market sentiment about an IPO. A higher GMP suggests strong demand for the shares and a positive outlook for the listing. Conversely, a low or negative GMP indicates weaker demand and possibly a less favorable listing.
However, it’s important to note that GMP is not an official or regulated metric, and it can fluctuate depending on market conditions and investor sentiment. It’s essentially a speculative figure based on unofficial transactions in the grey market.
Mobikwik IPO Price Band: The fintech company has set a price band of Rs 265 to Rs 279 per equity share for the book-built issue.
Mobikwik IPO Opening Date: The Mobikwik IPO subscription will be open from December 11 to 13, 2024, meaning the book-built issue will be available for bidding from Wednesday to Friday.
Mobikwik IPO Size: The company aims to raise Rs 572 crore through a completely fresh issue of shares.
Mobikwik IPO Lot Size: Bidders can apply in lots, with each lot consisting of 53 shares of the company.
Mobikwik IPO Share Allotment Date: The share allotment is most likely to take place on December 14, 2024, Saturday. In case of any delays, the allotment announcement may be made on December 16, 2024.
Mobikwik IPO Objective: The company plans to use the proceeds as follows: Rs 150 crore will be allocated for organic growth in its financial services business, Rs 107 crore for research and development in artificial intelligence, machine learning, and technology, and Rs 135 crore to expand its payment services. Additionally, Rs 70.2 crore will be used for capital expenditure on payment devices and for general corporate purposes.
SBI Capital Markets and DAM Capital Advisors are the public offer’s book-running lead managers, while Link Intime India is the registrar.
Should You Invest?
Gaurav Garg, Research Analyst at Lemonn, said: “The IPO is attractively priced at P/BV of 10.06 based on its NAV of Rs. 27.74 as of June 30, 2024, and at a P/BV of 2.97 based on its post-IPO NAV of Rs. 94.05 (at the upper cap).MobiKwik offers a compelling investment opportunity in its IPO, backed by a robust growth strategy and a proven track record of innovation in the fintech space. The company is scaling its product portfolio across payments, credit, wealth management, and insurance, while actively launching new solutions such as soundboxes, POS machines, and Merchant Credit Advances (MCA) to drive merchant retention and recurring revenue.”
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
