Ventive Hospitality Limited

One Mobikwik Systems Limited is a fintech company with platform business at its core, that has a two-sided payments network, consisting of consumers and merchants. They has acquired 161.03 million Registered Users and enabled 4.26 million Merchants to make and accept payments online and offline, as of June 30, 2024. They are planning to add newer products to their digital credit, investments, and insurance verticals. The Payment GMV has grown at an annual rate of 45.88% and MobiKwik ZIP GMV (Disbursements) has grown at an annual rate of 112.16% from Fiscal 2022 to Fiscal 2024. The Company has won various awards over the years, including the 'Economic Times Most Promising Brands Award' and 'Innovative DevOps Excellence in Pioneering Infrastructure Optimization for Payments' award at the India DevOps Show – 2023 and ET Iconic Brands of India Awards, as an 'Icon of Indigenous Excellence' in 2018. The Company capitalizes on various network effects, as outlined below:• Payments: The increase in the number of consumers leads to greater acceptance among Merchants, and vice-versa.• Consumer Credit: The growth in payments data facilitates broader consumer underwriting. The availability of credit products to consumers leads to heightened spending within the network.• Investments: Utilizing personal financial management tools like Lens allows for a detailed comprehension of consumers' financial data, resulting in personalized recommendations of investment products. As per financial performance, One Mobikwik Systems Limited has posted total income / net profits of Rs 543.22 Cr / Rs (128.16) Cr (FY22), Rs 561.12 Cr / (83.81) Cr (FY23), Rs 890.32 Cr / Rs 14.08 Cr (FY24) and Rs 345.83 Cr / Rs (6.62) Cr. So as per previous financials data, company has shown good growth. Company has an average EPS of Rs (7.54) and average RoNW of (25.12)% for last three fiscals. Issue is priced at a P/BV of 10.06 as per NAV of Rs 27.74/- as on 30.06.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around NA, 153.95 and NA respectively, which looks very aggressively priced. As per RHP, comparison between listed peers is given in above table. On BRLM's front, two lead managers are associated with this IPO, and have handled around 41 IPOs in last three fiscals. As per financials, One Mobikwik Systems Limited has shown good growth, RoNW is 8.66% and P/E is respectively NA, 153.95 and NA as per FY23, FY24 and annualized FY25 earnings. So, issue looks aggressively priced. Company is a fintech platform providing services to customers and merchants, which is highly competitive and fragmented business segmented. As online payments are increasing, such companies are growing multifold. So, we give NEUTRAL rating for this IPO and one may apply for listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Atul I. Chordia
• 2 Premsagar Infra Realty Private Limited
• 3 Atul I. Chordia HUF
• 4 BRE Asia ICC Holdings Ltd
• 5 BREP Asia III India Holding Co VI Pte. Ltd