Mobikwik IPO: Price Band, Dates & Details

New Delhi, Dec 6 (PTI) Peak XV and ADIA-backed One MobiKwik Systems on Friday said it has fixed a price band of Rs 265-279 per equity share for its Rs 572- crore Initial Public Offering (IPO) that opens for subscription on December 11.

The company has reduced its IPO size for the third time since it announced the listing plans three years ago from Rs 1,900 crore to Rs 572 crore.

The issue will end on December 13, while the bidding for anchor portion will open for a day on December 10, the company said in a statement.

The IPO is entirely a fresh issuance of equity shares worth up to Rs 572 crore with no any offer-for-sale (OFS) portion, according to the red herring prospectus (RHP).

In January, the company filed for a Rs 700-crore IPO. Later, it cut the size of the IPO to Rs 572 crore.

Bids can be made for a minimum of 53 equity shares and in multiples thereafter, it added.

As per the RHP, Peak XV Partners (formerly Sequoia Capital India) owned a 16.7 per cent stake, while Abu Dhabi Investment Authority (ADIA) held a 2.8 per cent holding in Mobikwik.

This is the second attempt by the Gurugram-based firm for the public issue following its first attempt in July 2021. Earlier, the company shelved its IPO plans and withdrew its draft papers due to unfavourable market conditions.

The proceeds from the fresh issue worth Rs 150 crore will be used for organic growth in its financial services business, Rs 135 crore for expanding its payment services and Rs 107 crore for research and development in AI, machine learning, and technology.

Funds from the IPO worth Rs 70.2 crore will also be used for capital expenditure on payment devices and general corporate purposes.

MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance. It was founded by Bipin Preet Singh and Upasana Taku.

The company faces stiff competition from major players, including PhonePe, Paytm, Airtel Payments Bank and Freecharge.

The digital payments firm reported a consolidated total income of Rs 890.3 crore in FY24 compared to Rs 561.6 crore in FY23 and Rs 543.2 crore in FY22.

It incurred losses amounting to Rs 128.16 crore and Rs 83.8 crore in FY22 and FY23, respectively. However, for the financial year 2023-24, the company posted a profit of Rs 14.08 crore.

SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers, while Link Intime India Pvt Ltd is the registrar for the IPO.

The company's equity shares are proposed to be listed on the BSE and NSE.