MobiKwik refiles DRHP with SEBI to raise Rs 700 crore via IPO; Here's all you need to know

Gurugram-based fintech startup MobiKwik has refiled its DRHP with the SEBI for an Initial Public Offering (IPO). 

The company aims to raise Rs 700 crore through this offering, marking its second attempt at launching an IPO.

The first attempt, a Rs 1,900 crore IPO, was made in July 2021, which notably received SEBI's approval. However, the company deferred its plans as market conditions worsened.

IPO structure and size

The IPO will consist entirely of a fresh issue of shares, with no Offer for Sale (OFS) component. The shares, with a face value of Rs 2 each, will be allocated with 75% reserved for qualified institutional buyers, 15% for Non-Institutional investors, and a maximum of 10% for retail individual investors. 

MobiKwik also plans a pre-IPO placement of shares worth around Rs 140 crore. The size of the fresh issue will be smaller if such placement is successful.

What it plans to do with the IPO proceeds

MobiKwik intends to use approx Rs 250 crore for expanding the financial services business, Rs 135 crore each for growing the payment services and investing in data, AI, and other technologies, and over Rs 70.28 crore for capital expenditure in the payment devices sector and general corporate purposes.

Is MobiKwik profitable?

MobiKwik has been unprofitable in the fiscal years 2021, 2022, and 2023. However, The company turned profitable in the six months ending September 30, 2023, with a profit of $1.1 million (Rs 9.48 crore) on revenue of $29.3 million (Rs 381.09 crore).

Who are the shareholders?

The book-running lead managers

The book-running lead managers (BRLM) for the IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, while Link Intime India Private Limited serves as the offer registrar.

The equity shares will be listed on the BSE and NSE.