One MobiKwik Systems’ (MobiKwik) ₹572 crore initial public offering will open for subscription on December 11 and close on December 13.
The price band has been fixed at ₹265-₹279 per share. Bidding for anchor investors will be open for one day on December 10.
The initial share sale is entirely a fresh issue of shares worth ₹572 crore. There is no offer for sale.
The funds raised will be used for growth in the financial services and payment services business. It will also be used for general corporate purposes, investments in machine learning (ML), artificial intelligence, data, products and technology, as well as capital expenditure for the payment instruments business.
MobiKwik IPO: Lot Size
An investor can bid for a minimum lot size of one lot, consisting of 53 shares, priced at ₹14,787.
The company has set aside 75% of the issue size for qualified institutional buyers (QIBs), 15% for non-institutional investors and the remaining 10% for retail shareholders.
MobiKwik IPO: About the Company
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik is a platform business at its core, with a two-way payment network consisting of consumers and merchants. The firm has garnered 161.03 million registered users and has enabled online and offline payments to 4.26 million merchants.
The MobiKwik app, which is available on the App Store and Google Play Store, offers investment, insurance and digital credit products.
MobiKwik IPO: Financials
The company had posted revenue of ₹875 crore in financial year 2023-24 (FY24), up 62.19% from ₹539.46 crore in FY23. Net profit stood at ₹14.08 crore in FY24 as against a net loss of ₹83.81 crore in the previous year.
DAM Capital Advisors and SBI Capital Markets are the book-running lead managers to the issue, while Link Intime India is the registrar.
According to the red herring prospectus (RHP), the IPO is a combination of a fresh issue of equity shares aggregating up to ₹950 crore and an offer for sale (OFS) of up to 3.81 crore equity shares by the promoter, investor shareholders and other shareholders.
Under the OFS, one of the promoter entities – Sai Quest Syn Private Limited – and the investing shareholders – TPG Asia VII SF Pte Ltd, HBM Private Equity India – will sell their respective stakes.
Bharti Srivari, Anitha Rudraraju Nandyala, Raju Penmasta, Dirk Walter Sartor, Jagdish Vishwanath Dore, Rajagopal Sriram Tatta and K Pandu Ranga Raju were the other selling shareholders who will sell their stake in the company.
At the upper end of the price band, the company is going to raise around ₹3,042.62 crore from the IPO.
Earlier, Hyderabad-based Sai Life Sciences had filed its IPO papers with the Securities and Exchange Board of India (SEBI) in July 2024 and received the market regulator’s approval to launch the initial share sale in November.
Out of the IPO proceeds, an amount of ₹720 crore will be used for debt repayment and a part will be used for corporate general purposes.
Investors can bid for a minimum of 27 equity shares and in multiples thereafter.