One Mobikwik Systems Ltd

IPO Note

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 One Mobikwik Systems Ltd

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Empowering Financial Inclusion, Driving Digital Innovation

One Mobikwik Systems Ltd. (OMSL) operates as a platform Industry Fintech

business, managing a two-sided payments network that

connects consumers and merchants. As of June 30, 2024, the Scrip Details
company has acquired 161.03 million registered users and Listing BSE & NSE
Open Date Dec 11, 2024
onboarded 4.26 million merchants to facilitate payments both
Close Date Dec 13, 2024
online and offline. OMSL enhances the utility of its platform by
Price Band INR 265 – 279
continuously introducing new products across digital credit,
Face Value INR 2
investments, and insurance verticals. By expanding its portfolio
Market Lot 53 Shares
Minimum Lot 1
in these areas, the company aims to transform its platform into a
more compelling solution for consumers, driving both
profitability and value creation. For the fiscal year ending March Issue Structure (%)
31, 2024, OMSL reported a profit of ₹14.08 crore. Its overarching Issue Size (INR cr) INR 572
goal is to leverage technology to promote financial inclusion, Issue Size (Shares) 20,501,792
particularly among India's underserved populations. QIB Share (%) ≥ 75%
Non-Inst Share (%) ≤ 15%
OMSL’s commitment to growth is reflected in its focus on frugal, Retail Share (%) ≤ 10%
digital-first innovations, offering a scalable product portfolio Pre Issue sh. (cr) 5.72
while maintaining one of the lowest employee cost-to-revenue Post Issue sh. (cr) 7.77
Post Issue Market
2,176
ratios among digital financial platforms in FY23. The company's
payment GMV grew at a CAGR of 45.88%, while Mobikwik ZIP Cap (cr)
GMV (disbursements) witnessed a CAGR of 112.16% between FY22
Shareholding Pre Post
and FY24. Its core focus areas include payments, consumer credit, (%)
(%) (%)
investments, and insurance. Notably, it has introduced co- Promoter 32.96 25.18
branded credit cards backed by fixed deposits, showcasing its Public 58.54 74.82
innovative approach to financial services. TOTAL 100 100

The financial services sector in India remains significantly

underpenetrated across various segments, including lending,
insurance, and mutual funds, presenting a substantial growth
opportunity for a technology-driven company like Mobikwik to
capture a sizable market share.
Key Consolidated Financial Data (INR Cr, unless specified)

Net Net EBITDA Net EPS BVPS RoE

EBITDA RoIC (%) P/E EV/EBITDA
Revenue Profit (%) (%) (₹) (₹) (%)
FY22 527 -41 -128 -7.84 -24.34 -16.43 27.76 -59.19 259.85 -16.98 -47.06
FY23 539 32 -84 5.94 -15.54 -10.75 18.29 -58.74 -103.80 -25.96 62.66
FY24 875 55 14 6.24 1.61 1.81 20.84 8.66 -380.67 154.57 36.66

Source: Ventura Research & Company update

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 Issue Structure and Offer Details

One Mobikwik Systems Ltd IPO is a book built issue of INR 572 cr. The issue
is entirely a fresh issue of 2.05 cr shares aggregating to INR 572 cr.

Issue Structure
Investor Category Allocation
QIB Not Less than 75% of the Net Issue
NII (HNI) Not more than 10% of the Net Issue

Retail Not more than 15% of the Net Issue

Number of shares based on a higher price band of INR 279
Source: Company Reports

Objects of the Issue

The Company proposes to utilize the Net Proceeds towards the following
objects:

1. Funding organic growth in our financial services business: INR 150 cr

2. Funding organic growth in our payment services business: INR 135 cr
3. Research and development in data, ML and AI and product and
technology : INR 107 cr
4. Capital expenditure for payment devices business: INR 70 cr
5. General corporate purposes

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 Financial Summary
Fig in INR Cr (unless specified) FY22 FY23 FY24 Fig in INR Cr (unless specified) FY22 FY23 FY24
Income Statement Per share data & Yields
Revenue 526.6 539.5 875.0 Adjusted EPS (INR) (16.4) (10.7) 1.8
YoY Growth (%) 82.5 2.5 62.2 Adjusted Cash EPS (INR) (16.2) (10.2) 2.4
Raw Material Cost 0.0 0.0 0.0 Adjusted BVPS (INR) 27.8 18.3 20.8
RM Cost to Sales (%) 0.0 0.0 0.0 Adjusted CFO per share (INR) (41.1) 3.5 (2.8)
Employee Cost 107.2 98.2 116.0 CFO Yield (%) (14.7) 1.2 (1.0)
Employee Cost to Sales (%) 20.4 18.2 13.3 Adjusted FCF per share (INR) (28.5) 20.6 3.1
Other Expenses 460.6 409.2 704.5 FCF Yield (%) (10.2) 7.4 1.1
Other Exp to Sales (%) 87.5 75.9 80.5
EBITDA (41.3) 32.0 54.6 Solvency Ratio (X)
Margin (%) (7.8) 5.9 6.2 Total Debt to Equity 0.7 1.3 1.3
YoY Growth (%) (27.7) (177.6) 70.4 Net Debt to Equity (1.1) (1.2) (1.1)
Depreciation & Amortization 2.1 4.3 4.3 Net Debt to EBITDA 5.6 (5.3) (3.2)
EBIT (43.4) 27.7 50.2
Margin (%) (8.2) 5.1 5.7 Return Ratios (%)
YoY Growth (%) (25.8) (163.9) 81.1 Return on Equity (59.2) (58.7) 8.7
Other Income 16.7 21.6 15.3 Return on Capital Employed (11.8) 8.6 13.4
Bill discounting & other charges 101.7 130.0 51.5 Return on Invested Capital 259.9 (103.8) (380.7)
Fin Charges Coverage (X) (0.4) 0.2 1.0
Exceptional Item 0.0 0.0 0.0 Working Capital Ratios
PBT (128.4) (80.6) 14.1 Payable Days (Nos) 52 80 95
Margin (%) (24.4) (14.9) 1.6 Inventory Days (Nos) 0 0 0
YoY Growth (%) 16.5 (37.2) (117.5) Receivable Days (Nos) 20 51 34
Tax Expense (0.3) 3.2 0.0 Net Working Capital Days (Nos) -31 -28 -61
Tax Rate (%) 0.2 (4.0) 0.0 Net Working Capital to Sales (%) (8.6) (7.8) (16.7)
PAT (128.2) (83.8) 14.1
Margin (%) (24.3) (15.5) 1.6 Valuation (X)
YoY Growth (%) 15.2 (34.6) (116.8) P/E (17.0) (26.0) 154.6
Min Int/Sh of Assoc 0.0 0.0 (0.0) P/BV 10.0 15.3 13.4
Net Profit (128.2) (83.8) 14.1 EV/EBITDA (47.1) 62.7 36.7
Margin (%) (24.3) (15.5) 1.6 EV/Sales 3.7 3.7 2.3
YoY Growth (%) 15.2 (34.6) (116.8)
Cash Flow Statement
Balance Sheet PBT (128.4) (80.6) 14.1
Share Capital 11.4 11.4 11.4 Adjustments (194.1) 114.2 (140.1)
Total Reserves 205.1 131.3 151.2 Change in Working Capital 1.7 (3.4) 104.0
Shareholders Fund 216.5 142.7 162.6 Less: Tax Paid 0.3 (3.2) (0.0)
Long Term Borrowings 0.0 22.5 42.3 Cash Flow from Operations (320.6) 27.0 (22.1)
Deferred Tax Assets / Liabilities (3.1) 0.0 0.0 Net Capital Expenditure (3.3) (1.5) (5.6)
Other Long Term Liabilities 6.0 11.4 9.2 Change in Investments (81.4) 0.8 32.6
Long Term Trade Payables 0.0 0.0 0.0 Cash Flow from Investing (84.8) (0.7) 27.1
Long Term Provisions 2.4 2.2 2.6 Change in Borrowings 109.7 148.0 55.0
Total Liabilities 221.8 178.8 216.8 Less: Finance Cost (101.7) (130.0) (51.5)
Net Block 9.3 14.5 15.8 Proceeds from Equity 321.4 0.0 0.0
Capital Work in Progress 0.0 0.0 0.0 Buyback of Shares 0.0 0.0 0.0
Intangible assets under development 0.0 0.0 0.0 Dividend Paid 0.0 0.0 0.0
Non Current Investments 1.0 1.6 4.6 Cash flow from Financing 329.4 18.0 3.5
Long Term Loans & Advances 162.1 147.4 143.9 Net Cash Flow (75.9) 44.3 8.5
Other Non Current Assets 1.6 0.1 0.3 Forex Effect 0.0 0.0 0.0
Net Current Assets 47.8 15.2 52.1 Opening Balance of Cash 2.3 (73.7) (29.4)
Total Assets 221.8 178.8 216.8 Closing Balance of Cash (73.7) (29.4) (20.9)

Source: Company Reports

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