One MobiKwik Systems IPO To Open For Subscription Soon; From GMP To Timeline, All You Should Know

The initial public offering (IPO) of fintech giant One Mobikwik Systems is set to hit the primary market this week. Positioned as a mainboard IPO, the Mobikwik issue will compete with the IPOs of Vishal Mega Mart and Sai Life Sciences, all of which commence their bidding on the same day.

IPO Details and Timeline

The subscription window for Mobikwik IPO opens on Wednesday, December 11, and closes on Friday, December 13. Investors keen on securing a stake in this fintech company should keep an eye on December 16, the tentative date for IPO allotment finalization. The shares are slated to list on December 18, making their debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Priced within a band of Rs 265 to Rs 279 per share, the IPO lot size is set at 53 shares. At the upper limit of the price band, Mobikwik aims to raise Rs 572 crore through a complete fresh issue of 2.05 crore equity shares.

Utilisation of Funds

The proceeds from this IPO will be deployed across multiple growth avenues. Mobikwik plans to invest in expanding its financial services and payment solutions, enhancing its technology backbone with data analytics, machine learning (ML), and artificial intelligence (AI), as well as boosting its product and technology infrastructure. Additionally, a portion of the funds will be used for capital expenditure related to its payment devices business and general corporate purposes.

The IPO is being managed by SBI Capital Markets and Dam Capital Advisors Ltd, with Link Intime India serving as the official registrar.

Grey Market Trends

As the IPO nears, the grey market activity surrounding Mobikwik shares is generating investor interest. The grey market premium (GMP), a key indicator of market sentiment, reveals a bullish trend for Mobikwik.

According to stock market observers, the Mobikwik IPO GMP stands at Rs 112 per share, signifying that its shares are trading at Rs 391 apiece in the unlisted market. This reflects a premium of 40% over the upper-end IPO price of Rs 279 per share.

It is essential for investors to remember that while GMP offers insights into market sentiment and potential listing gains, it is not a guaranteed predictor of the stock's post-listing performance.

With two other IPOs opening simultaneously, the competition is intense. However, Mobikwik's positioning in the fintech space and its growth strategy provides it with an edge. The positive sentiment in the grey market reflects investor confidence in the company's business model and future prospects.