Fintech firm MobiKwik gets Sebi approval to raise Rs 700 crore through IPO

Fintech firm MobiKwik on Monday received a nod from the Securities and Exchange Board of India (Sebi) to launch its Rs 700 crore initial public offering (IPO).

Mobikwik had filed the draft red herring prospectus (DRHP) with the regulator on January 4.

The company said proceeds from the fresh issue would be allotted to business growth across verticals such as financial services, payment services, investment in artificial intelligence (AI) and machine learning (ML), among others.

About Rs 250 crore would be utilised for funding growth in financial services, Rs 135 crore for payments services, Rs 135 crore for investment in data, AI and ML, and product technology, and Rs 70.28 crore for capital expenditure for payments devices business, and general corporate purposes.

 

The IPO will consist entirely of a fresh issue of Rs 700 crore, with a face value of Rs 2 per equity share. It will not have an offer for sale (OFS) component.

“The company, in consultation with the book-running lead managers, may consider a further issue of specified securities, including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as ‘Pre-IPO placement’. If such placement is completed, the fresh issue size will be reduced,” the company said in a release.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO, and Link Intime India Private Limited is the registrar of the offer.

The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The Gurugram-based company had refiled its IPO papers with the markets regulator in January.

Earlier in 2021, the Peak XV-backed company had filed a DRHP with a target to raise Rs 1,900 crore.

However, the company had to abandon its plan due to weak market conditions.

As of September, the firm has a base of 147 million registered users. It claims to have serviced 3.81 million merchants.

The IPO-bound company recorded its first full profitable year, reporting a profit after tax (PAT) of Rs 14.08 crore in financial year 2024 (FY24) following a loss of Rs 83.8 crore in FY23.

Its revenues rose 58.7 per cent on a year-on-year (Y-o-Y) basis to Rs 890.32 crore.