MobiKwik IPO Listing Tomorrow: Check Out What the GMP indicates

MobiKwik Listing: The Gurugram-based fintech company, also one of the most anticipated new-age IPOs (Initial public offering) of 2024, is all set to make its Dalal-Street debut tomorrow, December 18 (Wednesday). The company received a robust response from investors during the bidding period as the IPO was fully subscribed within hours.

The MobiKwik IPO was subscribed 119.38 times on the final bidding day. According to BSE (Bombay Stock Exchange) data, the public offering received bids for 1,41,72,86,992 shares against the 1.18 crore shares.

Also Read| Want to Rebuild Trust in Fintech, Not Just Raise Capital, Says Mobikwik CEO

The portion for retail investors' was subscribed 134.67 times, while the QIB (Qualified Institutional Buyers) segment was booked 119.50 times. Meanwhile, the NIIs (Non-Institutional Investors) portion also saw strong demand, getting subscribed 108.95 times.

Mobikwik GMP

The company aims to raise Rs 572 crore through its public offering. For investors lucky enough to secure an allotment, the GMP (grey market premium) signals a strong listing ahead.

GMP basically refers to the price level at which a stock is trading in the grey market before hitting the D-street.

As of 9:45 am, the shares of Mobikwik were trading at a grey market premium of Rs 165, commanding a premium of over 59 per cent.
It is worth mentioning that the fintech company is one of the most anticipated IPOs of this year. The public offering received a 'subscribe' recommendation from many brokerage houses.

Is Mobikwik profitable?

In FY24, the company reported a net profit of Rs 14.08 crore, a significant turnaround from the net loss of Rs 83.81 crore in the previous fiscal. The revenue figure also rose from Rs 561 crore in FY23 to Rs 890 crore in FY24. However, as of June 30 this year (Q1FY25), the company recorded a loss of over Rs 6 crore.

"Regarding the Q1 results, I think it’s inaccurate to describe the loss as significant. It’s important to note that we are still profitable this quarter, but the additional debt we’ve taken on, along with the interest payments, has made the EBITDA to PAT figure appear negative," Bipin Preet Singh, CEO, Mobikwik, told Outlook Business in an exclusive interview.

Besides fluctuating profits, the strict regulatory picture and strong competition in the fintech space might act as major challenges for the company.