One MobiKwik Systems Ltd on Friday approved the slump sale of its Lending Services Provider (LSP) business to wholly owned subsidiary MobiKwik Distribution Services Pvt Ltd (MDSPL), as part of a restructuring linked to RBI regulatory requirements.
According to the filing, the LSP business generated revenue of Rs 261.37 crore in FY26, contributing 22.7% of the company’s standalone revenue. The business had a net worth of Rs 95.22 crore as of March 31, 2026, representing 16.94% of the company’s standalone net worth.
The company said the transfer is being undertaken because Mobikwik Financial Services Pvt Ltd, a wholly owned subsidiary, has applied to the Reserve Bank of India for a Certificate of Registration to operate as an NBFC. As a pre-condition for obtaining the approval, the company is required to shift the LSP business to MDSPL.
The transaction will be executed through a business transfer agreement and is expected to be completed by the end of Q2 FY27, subject to shareholder approval and customary conditions.
The consideration for the slump sale will be discharged through issuance of non-convertible debentures by MDSPL to the parent company, based on the book value of assets and liabilities of the transferred business.
Separately, the board also approved amendment to the object clause of the Memorandum of Association to include operating as a Payment Aggregator under RBI’s September 2025 Payment Aggregator regulations.
The company further approved variation in utilisation of IPO proceeds and extension of timelines for deployment of IPO funds.