Digital payments company MobiKwik has reduced the size of its IPO to Rs 572 crore, marking its third revision.
The IPO, scheduled to launch on December 11, will carry a price band of Rs 265 to 279 per share, with benchmark auctions beginning on December 10. Subscriptions will close on December 13 and the trading of shares is scheduled for December 13. 18.
This comes after MobiKwik initially filed a request for Rs 1,900 crore. IPO in 2021, later revised to Rs 700 crore in January 2024. Market conditions and poor public market performance of peer startups led to these changes.
IPO Details and Objectives
MobiKwik aims to raise Rs 572 crore through fresh issue of equity shares, with proceeds spread across key business areas, including Rs 150 crore for financial services expansion, Rs 135 crore for growth of payment, Rs 107 crore for R&D in AI, ML, and technology development, Rs 70.2 crore for capital expenditure on payment devices.
The company has reserved 75% of the issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII) and 10% for retail investors. Investors can bid on a minimum lot of 53 shares, which costs Rs 14,787 in the upper price band.
What does MobiKwik do?
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik serves as a bridge to financial inclusion for underserved communities. It connects 161.03 million users with 4.26 million merchants, offering services such as digital wallets, UPI, peer-to-peer lending and credit products.
MobiKwik is the largest wallet player in India, with a market share of 23.11% in PPI wallet transactions as of May 2024.
The company recorded a robust revenue growth of 62% in FY24, generating Rs 875 crore, up from Rs 539 crore in FY23. MobiKwik earned a net profit of Rs 14.08 crore in FY24, rebounding from a loss of Rs 83.81 crore in FY23. However, it recorded a net loss of Rs 6.62 crore in Q1FY25 despite revenue of Rs 342.2 crore.
SBI Capital Markets and Dam Capital Advisors (formerly IDFC Securities) are the lead managers of the Mobikwik IPO, while Link Intime India Private Ltd is the issue registrar.