MobiKwik files DRHP with SEBI for Rs. 700 crore IPO
What's the story
MobiKwik has submitted draft papers to the Securities and Exchange Board of India (SEBI), with plans to raise Rs. 700 crore through an initial public offering (IPO).
The fintech unicorn initially attempted an IPO in July 2021 and was even granted approval by SEBI.
However, the company decided to pull back its Rs. 1,900 crore-IPO because global markets were facing a downturn back then.
This is the company's second attempt at an IPO with a smaller issue size.
Details
How MobiKwik intends to utilize IPO proceeds?
The IPO is completely a fresh issue.
According to the draft filing, Rs. 250 crore will be directed to the financial services sector, Rs. 135 crore for the payments business, and another Rs. 135 crore for "investment in data, ML and AI and product and technology."
Rs. 70 crore will cover capital expenditure and other expenses.
MobiKwik's management might also use Rs. 100 crore from net proceeds to acquire new consumers and merchants on their platform.
Insights
IPO details: Retail quota fixed at only 10%
The IPO's price band, lot size, and dates have not been finalized yet. These specifics will only come out when the DRHP of the company's IPO is made public post-approval.
According to the DRHP, 75% of shares are for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and up to 10% for retail individual buyers.
SBI Capital Markets and DAM Capital Advisors are the book-running lead managers. Link Intime India Private Limited is the registrar.
What Next?
MobiKwik's financial performance
In H1 FY24, MobiKwik reported a revenue of Rs. 243.9 crore, with 64% originating from its financial services operations.
The company's revenue quickly rose from Rs. 97.6 crore in FY22 to Rs. 285 crore in FY23.
The draft filings emphasized the rapid growth of MobiKwik's financial services business.
The digital credit gross merchandise value (GMV) surged by 404.16% between FY21 and FY22, and by 238.24% in FY23.