Payment platform Mobikwik has once again filed the its papers with the Securities and Exchanges Board of India (SEBI) to launch an initial public offering (IPO). The Gurugram-based company plans to raise ₹700 crore through the issue.
The Draft Red Herring Prospectus (DRHP) of Mobikwik states that the IPO will comprise entirely of fresh issue of ₹700 crore, with a face value of ₹2 per equity share. There will be no offer for sale (OFS) component in the issue.
As mentioned in the DRHP, Mobikwik will carry out the pre-IPO placement of shares worth around ₹140 crores before the issue is launched with the book running lead manager (BRLMs).
The BRLMs of the Mobikwik IPO will be SBI Capital Markets Limited and DAM Capital Advisors Limited, while the registrar of the issue is Link Intime India Private Limited. The equity shares of the company will be listed on the BSE and NSE, as proposed by the paperwork.
It must be noted that this is the second time that Mobikwik has filed its DRHP papers with SEBI in an effort to launch an IPO. The first attempt was made in July 2021, and the company had gotten its approval from the market regulator.
Mobikwik IPO: Dates, issue details
While the DRHP has been filed with SEBI by the company, the Mobikwik IPO price band, lot size and dates have not been finalised yet. These details will only be released when the RHP of the company’s IPO is made public after approval.
The ₹700 crore IPO will consist of only fresh issue, with no OFS component. The DRHP stated that 75 percent of the shares will be for qualified institutional buyers, 15 percent will be for non-institutional investors, and not more than 10 percent of the issue shall be allocated to retail individual buyers.
Out of the total ₹700 crore raised through the IPO, Mobikwik plans on using ₹250 crore for funding growth in the financial services business, ₹135 crore for growth in payment services business and growth in data and AI each, and over ₹70 crore for capital expenditure.
The draft filing said, “Our management will also have the discretion over the specific activities that will be funded towards certain Objects. For instance, we intend to utilize ₹100 crore from the Net Proceeds towards acquisition of new consumers and merchants on our platform.”