Mobikwik’s Renews its attempt at IPO

In the ever-shifting panorama of India’s financial landscape, Mobikwik’s renewed IPO attempt resembles a delicate tango – a dance of ambition, resilience, and calculated risk. After a two-year hiatus marked by the discordant waltz of market uncertainty, the 14-year-old fintech firm returns to the D-Street floor, poised to sashay into the public sphere with a Rs 700 crore fundraising effort. This second act, however, comes against a backdrop of a transformed audience, one where the rhythm of sentiment sways to the tune of optimism, yet whispers of trepidation still linger in the air.

Mobikwik’s Financial Symphony: Mastering the D-Street Tango

Analysts, the self-proclaimed dance critics, offer a mixed chorus of predictions. Some, like Sunil Damania of MarketsMojo Asset Management, liken the current environment to a vibrant salsa party, where “any IPO will benefit from the risk-on sentiment.” They point to the buoyant mood, where investors, eager to move with the market’s energetic pulse, may embrace Mobikwik‘s offer with open arms.

Mobikwik

However, a tinge of skepticism laces the optimistic melody. Others, preferring to remain shrouded in the anonymity of the backstage shadows, see a more desperate cha-cha in Mobikwik’s steps. “They know their financials aren’t the strongest,” they murmur, adding, “It’s a chance to grab the spotlight before the music stops.” This undercurrent of doubt whispers about Mobikwik’s underlying balance sheet and raises questions about whether their performance is a genuine pirouette of progress or a desperate lunge for survival.

Yet, Mobikwik’s choreography seems well-rehearsed. They plan to utilize the fresh issue funds as a strategic costume change, investing in the growth of their financial services, payment services, and data & AI sectors. This move away from the pedestrian shuffle of debt repayment or the predictable foxtrot of promoter exit, as seen in many IPOs, suggests a calculated strategy for a sustainable future.

What the Market has to say about Mobikwik IPO?

“This time, they’re investing in the show,” observes Sujith Salunkhe of Moneydhan Investment Advisory, highlighting the focus on growth. However, even as he acknowledges the well-crafted routine, a note of caution tinges his voice. “It could become another Paytm, but without the brand or resources,” he warns, adding that the long-term success of the dance may depend on factors beyond the initial applause.

Mobikwik, however, has honed its skills during the two-year intermission. They boast about achieving profitability in the first half of FY24, a feat akin to mastering a difficult step sequence. Their claim of Rs 3 crore and Rs 5 crore PAT in Q1 and Q2, respectively, resembles a well-executed spin, drawing appreciative glances from the audience.

Though the revenue remains flat, a steady beat, Mobikwik’s diverse repertoire of credit offerings, payment gateway charges, and a growing product portfolio offer a kaleidoscope of color to their performance. The RedSeer report, acting as the dance critic’s review, further applauds their “cost-effective, technology-driven innovations” and the agility of their low employee cost-to-revenue ratio, marking their efficiency with a glowing stamp.

IPO price prediction

The price prediction adds another layer of intrigue to the Mobikwik saga. Manish Chowdhary from Stoxbox predicts a smooth two-step if the issue is reasonably priced, while Rahul Sharma from Equity99 envisions a quickstep within the Rs 250-750 per share range. Ginodia, the cautious waltzer, sees a more measured foxtrot in the Rs 600-700 territory.

Ultimately, Mobikwik’s need to convince the discerning audience that their financial health can withstand the competitive quickstep. The current market momentum might provide the initial applause, but it’s Mobikwik’s own rhythm and growth trajectory that will determine the encore.

Mobikwik’s IPO attempt is more than just a financial transaction; it’s a captivating performance, a delicate tango where every step, every turn, every beat, holds the potential to either enthrall or disappoint. And as the curtains rise on this intriguing act, the question remains:

Will Mobikwik find its place under the D-Street spotlight or fade away into the backstage shadows, a forgotten melody in the cacophony of forgotten IPO hopefuls? Only time will tell if their carefully choreographed routine can win over the fickle audience and secure their place in the pantheon of successful public companies.

However, one thing is certain: Mobikwik’s second act on D-Street promises to be a captivating spectacle, a riveting dance where every move is scrutinized, every misstep amplified, and every success celebrated. As the music swells and the spotlight shines, Mobikwik must tap into its inner dancer, embrace the rhythm of the market, and twirl its way into a future of financial stability and growth.

Will they stumble under the pressure, their carefully constructed routine unraveling like a dropped ribbon? Or will they find their groove, their confidence building with each graceful turn, their performance culminating in a thunderous standing ovation from the market?

The answer lies not just in the numbers, the balance sheets, and the analyst reports, but also in the hearts and minds of the investors. Will they be swayed by Mobikwik’s story, its vision, and its promise of a digital future? Or will they remain cautious, their feet tapping to a different rhythm, their wallets firmly shut against the uncertainty?

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