8 Upcoming IPOs to Watch: Vishal Mega Mart, Mobikwik, and More Set to Launch Next Week!

MobiKwik IPO to raise ₹572 crore

8 Upcoming IPOs to Watch: Vishal Mega Mart MobiKwik Systems has announced the launch of its ₹572 crore initial public offering (IPO), set at a price band of ₹265-₹279 per equity share. The public issue, backed by Peak XV Partners (formerly Sequoia Capital India) and ADIA, will open for subscription from December 11 to December 13, with anchor bidding scheduled for December 10.

This IPO marks the company’s second attempt at listing after its initial plans in July 2021 were shelved due to market challenges. The IPO size has been reduced for the third time, down from the original ₹1,900 crore planned three years ago. The offering will consist solely of a fresh equity issue worth ₹572 crore, with no offer-for-sale (OFS) component, as outlined in the red herring prospectus (RHP). Investors can bid for a minimum lot of 53 equity shares, with additional bids in multiples thereof.

MobiKwik plans to allocate ₹150 crore from the proceeds to support organic growth in its financial services business. Additionally, ₹135 crore will go toward expanding its payment services, ₹107 crore will fund R&D in artificial intelligence, machine learning, and technology, and ₹70.2 crore will cover capital expenditure for payment devices and general corporate purposes.

8 Upcoming IPOs to Watch: Vishal Mega Mart  Founded by Bipin Preet Singh and Upasana Taku, the Gurugram-based fintech company offers various payment solutions and financial products, including digital credit, investments, and insurance. MobiKwik faces competition from established players such as PhonePe, Paytm, Airtel Payments Bank, and Freecharge. Major stakeholders include Peak XV Partners with a 16.7% share and ADIA with a 2.8% stake.

Financially, MobiKwik reported a profit of ₹14.08 crore in FY24, a significant turnaround from losses of ₹128.16 crore in FY22 and ₹83.8 crore in FY23. Its consolidated income grew to ₹890.3 crore in FY24, up from ₹561.6 crore in FY23 and ₹543.2 crore in FY22.

SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers for the IPO, with Link Intime India Pvt Ltd as the registrar.

1. Mobikwik IPO Grey Market Premium (GMP): Shares are currently trading at a premium of ₹101 in the grey market, as per stock market observers.
2. Price Band: The IPO price band is set at ₹265 to ₹279 per equity share.
3. Opening and Closing Dates: The IPO will open for subscription from December 11 to December 13, 2024, running from Wednesday to Friday.
4. Issue Size: The public offering aims to raise ₹572 crore through a fresh issue of equity shares, with no offer-for-sale (OFS) component.
5. Lot Size: Investors can bid in lots, with each lot comprising 53 shares of the company.
6. Allotment Date: The tentative date for share allotment is December 14, 2024. In case of delays, the allotment could be announced by December 16, 2024.
7. Registrar: Link Intime India Private Limited has been appointed as the official registrar for the IPO.
8. Lead Managers: SBI Capital Markets and DAM Capital Advisors are the book-running lead managers for the offering.
9. Listing Date: The IPO is expected to list on the BSE and NSE on December 18, 2024.
10. Valuation and Performance: The IPO is valued at ₹2,295.45 crore. For FY24, Mobikwik’s revenue grew by approximately 59% year-on-year, while Profit After Tax (PAT) surged by around 117%.

MobiKwik vs. Paytm: Key Performance Indicators Compared

8 Upcoming IPOs to Watch: Vishal Mega Mart – As MobiKwik prepares for its ₹572 crore IPO, set to open on December 11, a comparison with its primary competitor, Paytm, sheds light on their performance metrics and market positions in India’s rapidly growing fintech sector.

Industry Context

8 Upcoming IPOs to Watch: Vishal Mega Mart – India’s fintech industry, valued at $110 billion in 2024, is projected to grow to $420 billion by 2029 at a CAGR of 31%. This growth is fueled by digital economy initiatives and a tech-savvy population. However, challenges include navigating regulatory frameworks and adapting to evolving technology.

Financial Performance (FY24)

MobiKwik reported revenue of ₹890 crore and a net profit of ₹14.08 crore, marking its first full year of profitability after 15 years of losses. In contrast, Paytm generated revenue of ₹9,978 crore but incurred a net loss of ₹1,422 crore. Paytm’s contribution margin stood at 56%, higher than MobiKwik’s 37.25%, showcasing better operational efficiency.

MobiKwik achieved a positive EBITDA margin of 4.18%, whereas Paytm reported a negative margin of -3.61%. MobiKwik maintained lower employee costs at 13.03% compared to Paytm’s 31%. However, Paytm has a much lower debt-equity ratio of 0.01x compared to MobiKwik’s 0.73x, reflecting a stronger balance sheet.

Operational Metrics (FY24)

MobiKwik processed ₹3,819.54 crore in payment volume, whereas Paytm handled a significantly larger ₹1,83,00,000 crore. Paytm also leads in registered users, with over 30 crore compared to MobiKwik’s 15.58 crore. In Buy Now Pay Later (BNPL) transactions, Paytm disbursed ₹25,264 crore, far exceeding MobiKwik’s ₹6,070.2 crore.

In digital credit, Paytm processed ₹52,390 crore, while MobiKwik managed ₹9,093.35 crore. Paytm also has a larger offline merchant network of 1.07 crore compared to MobiKwik’s 39.3 lakh. However, MobiKwik earns more per transaction, with a payments take rate of 0.83% compared to Paytm’s 0.34%.

Conclusion

MobiKwik, while smaller in scale, has made significant strides by achieving profitability and maintaining efficient cost structures. Its focus on technology and revenue growth sets it apart as a promising player in the fintech sector. Paytm, however, remains a dominant force with a larger ecosystem, user base, and transaction volume.

As India’s fintech sector continues to grow, both companies are poised to benefit, though MobiKwik’s higher leverage and Paytm’s ongoing losses highlight the need for careful consideration by investors.

IPO Market Gains Momentum: Vishal Mega Mart, Mobikwik, and More Set to Launch

8 Upcoming IPOs to Watch: Vishal Mega Mart – The Indian primary markets are set for an action-packed week, with a flurry of IPOs from both mainline companies and SMEs. Among the highlights are Vishal Mega Mart and Mobikwik, which will open their IPOs alongside five SME offerings.

This activity adds to what has already been a record-breaking year for IPOs. According to BSE data, 138 companies have gone public in 2024, including 76 mainboard listings, providing a wealth of opportunities for investors.

Key IPOs Opening Next Week

Vishal Mega Mart IPO

• Subscription Period: December 11–13, 2024
• Price Band: ₹74-78 per share
• Lot Size: Minimum 190 shares
• Offer Structure: Complete Offer for Sale of 1,025,641,025 shares
• Important Dates:
  • Basis of allotment: December 16, 2024
  • Credit of shares to demat accounts: December 17, 2024
  • Listing: December 18, 2024, on BSE and NSE
• Managers: Kotak Mahindra Capital Company, ICICI Securities, Jefferies India, Morgan Stanley India, and others

Sai Life Sciences IPO

• Subscription Period: December 11–13, 2024
• Price Band: ₹522-549 per share
• Lot Size: Minimum 27 shares
• Offer Structure:
  • Fresh issue of 17,304,189 shares
  • Offer for Sale of 38,116,934 shares
• Important Dates:
  • Basis of allotment: December 16, 2024
  • Credit of shares to demat accounts: December 17, 2024
  • Listing: December 18, 2024, on BSE and NSE
• Managers: Kotak Mahindra Capital Company, Jefferies India, Morgan Stanley India, and IIFL Securities

Mobikwik IPO

• Subscription Period: December 11–13, 2024
• Price Band: ₹265-279 per share
• Lot Size: Minimum 53 shares
• Offer Structure: Fresh issue of 20,501,792 shares
• Important Dates:
  • Basis of allotment: December 16, 2024
  • Credit of shares to demat accounts: December 17, 2024
  • Listing: December 18, 2024, on BSE and NSE
• Managers: SBI Capital Markets and DAM Capital Advisors

SME IPOs

8 Upcoming IPOs to Watch: Vishal Mega Mart: Five SME IPOs are also set to open next week, including Supreme Facility Management, Purple United Sales, Toss The Coin, Jungle Camps India, and Dhanlaxmi Crop Science. Additionally, Emerald Tyre Manufacturers and Nisus Finance Services will list on the NSE SME and BSE SME platforms on December 12 and December 11, respectively.

Conclusion

The upcoming week underscores the robust momentum in the Indian IPO market. With a mix of established brands like Vishal Mega Mart and innovative players like Mobikwik, investors have a diverse range of opportunities to consider.