Mobikwik IPO Received Final Approval From SEBI: What You Need to Know?

The Securities and Exchange Board of India (SEBI) has granted final approval to Gurugram-based Mobikwik Systems Limited (Mobikwik IPO) to launch a ₹700 crore Initial Public Offering (IPO). The company refiled its IPO documents on January 4 of this year.

Key Details 

Mobikwik IPO will consist solely of a fresh issue of equity shares at a face value of ₹2 per share, with no offer for sale. In consultation with its book-running lead managers, Mobikwik may consider raising an additional ₹140 crore through methods such as private placement, preferential allotment, or a rights issue as part of a “Pre-IPO placement.” Should this placement occur, the size of the fresh issue will be adjusted accordingly.

Use of IPO Proceeds 

Proceeds from the IPO will be allocated as follows: ₹250 crore for expanding the financial services business, ₹135 crore for growth in payment services, ₹135 crore for investments in data, machine learning, AI, and technology, ₹70.28 crore for capital expenditures related to payment devices, and the remainder for general corporate purposes.

Mobikwik aims to enhance financial inclusion for underserved populations in India through innovative technology. The company provides a range of payment and financial services for businesses, including online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

Through its subsidiary Zaakpay, Mobikwik also operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator operations.

Operational Highlights

As of September 30, 2023, Mobikwik has amassed 146.94 million registered users and supports 3.81 million merchants in processing both online and offline payments. The company’s Payment Gross Merchandise Value (GMV) has seen an annual growth rate of 32.33%, while MobiKwik ZIP GMV (disbursements) has surged by 354.86% from Fiscal 2021 to Fiscal 2023.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO, with Link Intime India Private Limited serving as the registrar. Mobikwik shares will be listed on both the BSE and NSE.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.