MobiKwik Files RHP With SEBI, Reduces Fresh Issue Size To INR 572 Cr

SUMMARY

MobiKwik has now filed its red herring prospectus with SEBI, where it reduced the size of its fresh issue by around 18% to INR 572 Cr from INR 700 Cr

The fintech major has fixed a price band of INR 265 to INR 279 for its IPO. At the upper price band, the company would be valued around INR 2,165 Cr (around $255 Mn).

The three-day share sale will conclude on December 13 and shares of MobiKwik will list on the BSE and NSE on December 18

Over two months after securing approval for its INR 700 Cr initial public offering (IPO), fintech major MobiKwik has now filed its red herring prospectus (RHP) with the markets regulator Securities and Exchange Board of India (SEBI).

MobiKwik has reduced the size of its fresh issue by around 18% to INR 572 Cr from INR 700 Cr.

The company has fixed a price band of INR 265 to INR 279 for its IPO. At the upper price band, the company would be valued around INR 2,165 Cr (around $255 Mn).

The company’s IPO will open on December 11 and close on December 13, as per the RHP filed.

The Delhi NCR-based company will offer its equity shares with a face value of INR 2 each, totaling up to INR 572 Cr.

Based on the RHP, MobiKwik will use the net proceeds from the IPO for four key expenses, where INR 150 Cr will be invested in its financial services business, INR 135 Cr for its payments service business.

Other than this, the company will pour in INR 107 Cr towards research and development in data, ML and AI and product and technology. A total of INR 70.28 Cr will go towards capital expenditure for payment devices business.

Additionally, the company plans to allocate a sum for its general corporate expenditure, although the amount is not defined.

MobiKwik’s initial offer size was INR 700 Cr, as per its draft red herring prospectus (DRHP) filed in January. It is also noted that the company filed its DRHP without any offer-for-sale component.

This development comes weeks after Blackbuck and Swiggy went public in November.

In terms of the company’s financial performance, the IPO-bound startup turned profitable in the financial year 2023-24 (FY24), where it posted a net profit of INR 14.1 Cr as against a net loss of INR 83.19 Cr in the previous fiscal year, on the back of strong business growth.

Also, MobiKwik’s revenue from operations zoomed 62% to INR 875 Cr during the year under review from 539.5 Cr, a year ago.

Note: The article has been edited to add the price band for MobiKwik’s IPO.