MobiKwik sets price band of Rs 265-279 a share; cuts down IPO size for third time
Digital payments firm One MobiKwik Systems Ltd has reduced its IPO size for the third time to around Rs 572 crore. The price band is set at Rs 265-279 per share, with subscriptions opening on December 11.
Anchor bidding will begin on December 10, and the issue will close on December 13. The basis of allotment is scheduled for December 16, followed by the initiation of refunds and equity credit on December 17. On the upper price band, the total mcap of the firm will be around Rs 2165 crore.
The stock is set to list on December 18. Initially, the company filed for a Rs 700 crore IPO in January 2024. In July 2021, it received approval for a Rs 1,900 crore IPO but postponed the plan due to market volatility and the weak performance of peer startups in public markets. SBI Caps and DAM Capital are the lead managers for the issue.
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The company plans to utilize the proceeds for various purposes, including Rs 150 crore for organic growth in its financial services business, Rs 135 crore for expanding its payment services, Rs 107 crore for research and development in AI, machine learning, and technology, and Rs 70.2 crore for capital expenditure on payment devices.
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik aims to drive financial inclusion for underserved populations through technology. Its platform connects 161.03 million users with 4.26 million merchants (as of June 30, 2024), facilitating online and offline payments. The MobiKwik application offers digital credit, investment, and insurance products, expanding the platform's utility for both new and existing customers.
As of May 2024, MobiKwik is the largest wallet player in India, holding a 23.11% market share of PPI wallet gross transaction value (GTV), excluding Fast Tag GTV. It ranked sixth among 80 BBPS operating units in August 2024 for transaction volume, value, uptime, and complaint resolution. The company has evolved beyond its initial wallet operations to provide a range of financial services, including credit products like MobiKwik ZIP and ZIP EMI, digital payments through its wallet, UPI, and Zaakpay, and peer-to-peer lending via MobiKwik Xtra.
For FY24, the firm reported a revenue of Rs 875 crore, a significant increase from Rs 539.46 crore in the previous year. Net profit stood at Rs 14.08 crore, recovering from a loss of Rs 83.81 crore last year. In the June quarter, Mobikwik posted revenue of Rs 342.27 crore with a net loss of Rs 6.62 crore.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.