With the intention of raising Rs 700 crore through an initial public offering (IPO), One Mobikwik Systems Limited has filed its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The initial public offering (IPO), which is priced at Rs 2 per share, consists of a new equity share issue without an offer to sell.
The issuance will follow a book-building process, with 75% allocated to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail individual bidders. The company might also explore a pre-IPO placement of specified securities, potentially reducing the fresh issue size.
In the event that the IPO is a success, the proceeds will be divided among a number of uses, such as the following: Rs 250 crore for the expansion of the financial services business; Rs 135 crore for the expansion of the payment services business; Rs 135 crore for investments in data, machine learning, artificial intelligence, and product technology; Rs 70.28 crore for capital expenditures related to the payment devices business; and general corporate needs.
Established by Bipin Preet Singh and Upasana Taku, MobiKwik focuses on leveraging technology to enhance financial inclusion in India, providing extensive payment and financial services to businesses and merchants. The flagship application, MobiKwik, offers consumers digital credit, investments, and insurance products.
As of September 30, 2023, MobiKwik boasts 146.94 million registered users and has facilitated online and offline payments for 3.81 million merchants. The company’s commitment to innovation is reflected in its product lineup, contributing to maintaining one of the lowest employee cost-to-revenue ratios among digital financial service platforms in Fiscal 2023.
The IPO is managed by SBI Capital Markets Limited and DAM Capital Advisors Limited, with Link Intime India Private Limited serving as the registrar. The equity shares are proposed to be listed on both the BSE and NSE.
