MobiKwik IPO GMP Approaches 40% Before Launch on December 11

One MobiKwik Systems Ltd. is set to launch its initial public offering (IPO) on December 11, 2024. The company, co-founded by Bipin Preet Singh and Upasana Taku, specializes in prepaid digital wallets and online payment services through its popular application, MobiKwik.

As the opening date approaches, the grey market premium (GMP) for the MobiKwik IPO suggests a potential listing gain of approximately 39.78% based on the upper end of its price range. On December 9, 2024, the GMP stood at Rs 111, reflecting strong demand and positive sentiment in the unlisted market.

Since the shares have been traded in the grey market from December 6, the premium has risen from Rs 100 per share to the current Rs 111. This trend indicates the likelihood of a strong listing if current sentiments hold.

It is important for investors to note that the GMP does not represent the official stock price but provides an indication of expected performance post-listing. This premium is subject to fluctuations and may change quickly.

MobiKwik IPO Subscription Details

The MobiKwik IPO will open for subscription on December 11 and close after a three-day bidding period on December 13. Share allotment results are expected to be announced on December 16, with shares set to be listed on the BSE and NSE on December 18.

Offer Price and Size

The price band for the MobiKwik IPO has been fixed between Rs 265 and Rs 279 per share. Retail investors are required to apply for a minimum of 53 shares, which translates to a minimum investment of Rs 14,787 for each application.

The total public offering involves a fresh issuance of 2.05 crore shares, valued at approximately Rs 572 crore. The IPO is managed by SBI Capital Markets Ltd. and DAM Capital Advisors Ltd., with Link Intime India Pvt. Ltd. serving as the registrar for the offering.

Planned Use of Funds

According to the company's red herring prospectus, MobiKwik plans to utilize the net proceeds from the IPO to enhance its payment and financial services businesses. This includes investments in technology, machine learning, artificial intelligence, and product development. Additionally, a portion of the funds will be allocated for capital expenditure in its payment devices segment and for general corporate purposes.

Overview of One MobiKwik Systems Ltd.

One MobiKwik Systems Ltd. has emerged as a leader in providing digital wallet and online payment solutions. The MobiKwik application enables users to access a variety of financial products, including digital credit, investments, and insurance services.

As the launch date for the IPO approaches, many investors are keenly eyeing the potential gains that MobiKwik's public offering may provide.

Disclaimer: Investing in initial public offerings carries risks. It is advisable for investors to seek guidance from financial advisors and thoroughly review the red herring prospectus before making investment decisions.

IPO, GMP, MobiKwik