MobiKwik, a payment platform, has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, outlining plans for an IPO to generate ₹700 crores. The Gurugram-based company intends to raise funds solely through a fresh issue of ₹700 crore, featuring a face value of ₹2 per equity share, with no offer for sale (OFS) component in the offering.
MobiKwik’s Fresh Issue, Pre-IPO Placement, and Key Players
Exclusively comprising a fresh issue at a face value of ₹2 per equity share. Notably, there will be no offer for sale (OFS) component in this offering.
In alignment with the DRHP, Mobikwik plans a pre-IPO placement of shares worth approximately ₹140 crores before the official launch, facilitated by book running lead managers (BRLMs) SBI Capital Markets Limited and DAM Capital Advisors Limited. Link Intime India Private Limited assumes the role of the registrar for the issue.
Looking ahead, Mobikwik’s equity shares are poised for listing on the BSE and NSE, marking a significant stride as outlined in the IPO paperwork. Gear up for a transformative 2024 with Mobikwik!
Mobikwik’s pursuit of an IPO is noteworthy, having filed its Draft Red Herring Prospectus (DRHP) with SEBI for the second time. The initial attempt in July 2021 secured approval from the market regulator, showcasing the company’s resilient commitment to navigating the IPO landscape.
Awaited Details, ₹700 Crore Fresh Issue, and Distribution Insights
Mobikwik has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, initiating the IPO process. While the specific details such as the price band, lot size, and dates are pending finalization, they will be disclosed upon approval when the Red Herring Prospectus (RHP) becomes public.
The ₹700 crore IPO is exclusively a fresh issue, devoid of any Offer for Sale (OFS) component. As the DRHP outlines, the distribution plan allocates 75% of the shares to qualified institutional buyers, 15% to non-institutional investors, and a maximum of 10% to retail individual buyers. Stay tuned for updates on Mobikwik’s dynamic IPO journey.
Notably, ₹250 crore is earmarked for fostering growth in the financial services business, while ₹135 crore each is designated for advancing the payment services business and bolstering data and AI initiatives. Additionally, over ₹70 crore is allocated for capital expenditure.
The draft filing underscores the management’s discretion stating, “Our management will have the discretion over the specific activities funded towards certain Objects.” Specifically, ₹100 crore from the Net Proceeds is intended for the acquisition of new consumers and merchants on the platform.