One Mobikwik Systems IPO: Should you apply for long term or listing gain?

One Mobikwik Systems' IPO, a fintech company that offers digital wallets and online payment services, will open for subscription on December 11, 2024, and last for three days until December 13. The issue size of the IPO is Rs 572 crore, in which the minimum applying lot size is 53 shares. The fintech company has fixed the price band between Rs 265 and Rs 279. In terms of allocation, the ratio of the issue is 75 per cent for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and for retail investors, it is 10 per cent.

Should you apply for Mobikwik IPO?

Analysts at Bajaj Broking have recommended the IPO to for the long-term instead of for a listing gain by citing that the issue is priced at a 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.

"Annualised earnings of FY25 against its post-IPO fully diluted paid-up equity capital, the asking price results in a negative P/E due to Q1 losses," the brokerage said. The brokerage has recommended to an investor to apply the IPO from a long-term perspective.

One Mobikwik IPO: Key details; BRLMS, registrar, listing date & more

The IPO is being managed by two companies SBI Capital Markets, and DAM Capital Advisors. The official registrar of the IPO is Link Intime Pvt Ltd.

As mentioned earlier the IPO will open for subscription on Wednesday, December 11, 2024, and close on Friday, December 13, 2024. The basis of allotment will be finalised on Monday, December 16, 2024. The stock will debut on the exchanges - BSE and NSE - on Wednesday, December 18, 2024.