MobiKwik IPO: Fintech Major Raises INR 257 Cr From Anchor Investors

In the run up to its initial public offering (IPO), fintech company MobiKwik has raised INR 257.40 Cr by allotting 92.25 Lakh shares at INR 279 apiece to 21 anchor investors, including Morgan Stanley, SBI, Whiteoak, HDFC Mutual Fund, Axis Mutual Fund, among others. 

Overall, 49.27 Lakh equity shares, or 53.42% of the allotted shares in the anchor round, were lapped up by six domestic mutual funds. SBI and Quant Mutual Fund nabbed the biggest pieces of the anchor investment round, getting 14.33 Lakh shares for INR 39.99 Cr each. 

Meanwhile, HDFC Mutual Fund grabbed 11.64 Lakh shares of MobiKwik through its three funds –  HDFC Multicap Fund, HDFC Banking and Financial Services Fund and HDFC Non Cyclical Consumer Fund. 

MobiKwik’s IPO will open on Wednesday (December 11) and close on Friday (December 13).

The startup plans to raise INR 572 Cr through its public issue and has set a price band of INR 265-279 for the IPO. MobiKwik’s investors, which include Peak XV Partners, Bajaj Finance, among others, are not divesting any stake, and the IPO solely comprises a fresh issue of shares.

The company is eyeing a valuation of nearly $255 Mn during the public listing, down from $1.5 Bn to $1.7 Bn it sought during its previous attempt at an IPO in 2021. 

Ahead of the listing, brokerages gave a thumbs up to MobiKwik’s public issue. While Bajaj Broking recommended investors to subscribe to MobiKwik’s IPO with a long-term perspective, Kotak Securities said it is an attractive investment opportunity.

Buoyed by positive remarks from brokerage firms, MobiKwik shares were trading about 40% higher in the grey market on Monday (December 9) compared to the upper end of the price band of INR 265 to INR 279. 

MobiKwik is the second major Indian fintech startup looking to list on the bourses, after Paytm went public in 2021. The Vijay Shekhar Sharma-led company’s public issue comprised a fresh issue of INR 8,300 Cr and an offer for sale of INR 10,000 Cr.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants. It earns revenues by offering online checkout services, soundboxes, merchant cash advance, among other services. 

MobiKwik slipped into the red in the first quarter (Q1) of the fiscal year 2024-25 (FY25). It reported a net loss of INR 6.6 Cr during the quarter against a net profit of INR 3 Cr a year ago. Revenue from operations stood at INR 342.2 Cr during the quarter under review.

MobiKwik had posted a net profit of INR 14.1 Cr in FY24 as against a net loss of INR 83.19 Cr in the previous fiscal year. Operating revenue rose 62% to INR 875 Cr from INR 539.5 Cr in FY23.

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