MobiKwik, a leading fintech company, has submitted the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) in an attempt to raise Rs 700 crore via an initial public offering (IPO).
This is the fintech’s second effort to go public following the cancellation of its initial public offering (IPO) plan in 2021 due to unfavorable market conditions. The company subsequently submitted the DRHP to Sebi in order to conduct an initial public offering (IPO) of Rs 1,900 crore, which included the additional issuance of shares valued at Rs 1,500 crore. This time, the entire offer is for newly issued shares.
The most recent DRHP states that at least 75% of the issuance will be allotted to eligible institutional buyers, 15% will go to non-institutional investors, and no more than 10% would be made available to retail bids.
The business may explore a further issuance of some securities, including rights issues, preferential allotments, private placements, or any other technique totaling `140 crore, as a ‘pre-IPO placement,’ after consulting with the book-running lead managers. The fresh issue size will be decreased upon completion of such placement, the business stated in a statement.
Funding for expansion in the financial services & payment services industries as well as investments in artificial intelligence, machine learning, and data will be made possible by the proceeds from the new issue.
146.94 million users & 3.81 million merchants made up the company’s user base as of September 30. In the same quarter, MobiKwik –MobiKwik’s net loss dropped 35% year over year to `83.81 crore, while its operating revenue increased 2% year over year to `539.47 crore
The IPO’s book-running lead managers are SBI Capital Markets and DAM Capital Advisors, and the proposal is for the equity shares to be listed on the BSE and NSE.
