One Mobikwik Systems, the parent company of Mobikwik, shall launch its initial public offering (IPO) on Wednesday, December 11. The fintech player shall be offering its shares in the range of Rs 265-279 apiece, for which investors can apply for a minimum of 53 equity shares and its multiples thereafter. The issue will close for bidding on Friday, December 13.
Incorporated in 2009, Gurugram-based Mobikwik is a fintech company providing prepaid digital wallets and online payment services. The company provides a range of payment services, enabling consumers to pay utility bills, to make payments for online and offline purchases, transfer of money and scan QR codes and make payments using UPI or Rupay credit cards.
The IPO of Mobikwik is entirely a fresh share sale of little more than 2.05 crore equity shares, amounting to Rs 572 crore. The net proceeds from the issue shall be utilized towards funding growth in the financial services, funding growth in the payment services, investment in data, ML, AI, product and technology, capital expenditure for the payment devices business and general corporate purposes.
Mobikwik has created innovative products such as MobiKwik ZIP,ZIP EMI for consumers, and merchant cash advance for merchants through in-house models and strategic partnerships with lending partners. Its offerings utilize digital public infrastructure (DPI) such as Aadhaar, E-Nach, Digi-Locker and NSDL to provide seamless and digital-first experiences for users.
As of June 30, 2024, the company has 161.03 million registered users and has enabled 4.26 million merchants to make and accept payments both online and offline. MobiKwik ZIP is a flagship product that lets consumers buy now and pay later within 30 days, offering flexibility and easy repayment options.
For the three-months ended on June 30, 2024, the company reported a loss of Rs 6.62 crore with a revenue of Rs 345.83 crore. The company clocked a bottomline of Rs 14.08 crore with a revenue of Rs 890.32 crore for the financial year ended 2023-24. The company shall command a total market capitalization close to Rs 2,300 crore.
One Mobikwik Systems has reserved 75 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will have only 10 per cent of reservation in the IPO.
SBI Capital Markets and Dam Capital Advisors (Formerly IDFC Securities) are the book running lead managers of the Mobikwik IPO, while Link Intime India Private Ltd is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on December 18, Wednesday.