MobiKwik Systems on Friday announced has announced itsRs 572 crore initial public offering (IPO) with a price band of Rs 265-279 per equity share. The public issue of Peak XV and the ADIA-backed fintech firm will open on December 11 and end on December 13, with anchor bidding scheduled for December 10.
The company has reduced the IPO size of its IPO for the third time from initial Rs 1,900 crore since its initial listing plans three years ago.
The IPO will consist entirely of a fresh issue of equity shares worth up to Rs 572 crore, with no offer-for-sale (OFS) component, as per the red herring prospectus (RHP).
This is the second time the mobile-based app has filed for a public issue after its first attempt in July 2021 was shelved due to unfavorable market conditions.
The company stated that investors can bid for a minimum of 53 equity shares, with additional bids in multiples thereof.
The company plans to use Rs 150 crore from the fresh issue to drive organic growth in its financial services business. Additionally, Rs 135 crore will be allocated to expanding its payment services, Rs 107 crore will fund research and development in artificial intelligence (AI), machine learning, and technology, while Rs 70.2 crore will be used for capital expenditure on payment devices and general corporate purposes.
The Gurugram-based app, founded by Bipin Preet Singh and Upasana Taku, offers a range of payment options and financial products, including digital credit, investments, and insurance.
The company faces stiff competition from major market players such as PhonePe, Paytm, Airtel Payments Bank, and Freecharge.
Peak XV Partners (formerly Sequoia Capital India) holds a 16.7 per cent stake in the company, while ADIA owns a 2.8 per cent stake.
MobiKwik reported a profit of Rs 14.08 crore for FY24, with consolidated total income rising to Rs 890.3 crore, compared to Rs 561.6 crore in FY23 and Rs 543.2 crore in FY22. However, the company incurred losses of Rs 128.16 crore in FY22 and Rs 83.8 crore in FY23.
SBI Capital Markets Ltd and DAM Capital Advisors Ltd are acting as the book-running lead managers for the issue, while Link Intime India Pvt Ltd is the registrar.
