Fintech major MobiKwik has filed the Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (Sebi) to raise Rs 700 crore through an initial public offering (IPO).
This is the fintech’s second attempt to go public after 2021, when it cancelled the IPO plan citing weak market conditions. The fintech had then filed the DRHP with Sebi for a Rs 1,900-crore IPO, which consisted of fresh issue of shares worth Rs 1,500-crore. This time, the whole offer is for fresh issue of shares.
According to the latest DRHP, not less than 75% of the issue shall be available for allocation to qualified institutional buyers, 15% for non-institutional investors, and not more than 10% will be available to retail bidders.
“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 `140 crore as ‘pre-IPO placement’. If such placement is completed, the fresh issue size will be reduced,” the company said in a statement.
The proceeds from the fresh issue will be used for funding growth in the financial services & payment services business and investment in data, machine learning & artificial intelligence, among others.
As of September 30, the company’s user base stood at 146.94 million users and 3.81 million merchants. MobiKwik’s FY23 revenue from operations rose 2% year-on-year to `539.47 crore and net loss decreased 35% y-o-y to `83.81 crore during the same period.
SBI Capital Markets and DAM Capital Advisors are the book-running lead manager for the IPO and the equity shares are proposed to be listed on the BSE and NSE.