Fintech company MobiKwik is going to launch IPO. The company’s board has approved raising Rs 880 crore through IPO.
This is the second attempt of Gurugram company MobiKwik to get listed in the market by bringing IPO. The company will raise Rs 880 crore by issuing new shares. The company will also consider pre-IPO placement of shares worth Rs 176 crore. The special resolution for the IPO was passed on December 27, 2023.
Only new shares will be issued, there will be no OFS.
According to the proposal, there will be only fresh issues in the IPO, existing shareholders will not sell their shares through Offer for Sale (OFS).
MobiKwik was started in the year 2009 by Bipin Preet Singh and Upasana Taku. The company provides digital payment solutions like mobile wallet, buy now-pay later (BNPL).
Earlier there was a plan for IPO of Rs 1,900 crore
The company had earlier filed its draft red herring prospectus (DRHP) in 2021, when competitor Paytm had launched its IPO and had initially seen a 25% decline.
MobiKwik then withdrew its IPO citing market conditions. Earlier, there was a plan to keep the value of IPO at around Rs 1,900 crore and it had got the approval of SEBI. This included fresh issue of Rs 1,500 crore and OFS of Rs 400 crore.
If compared to then, the company is raising less than half of that amount through the current IPO.
Continuously profitable company!
According to a statement issued in October 2023, the company had claimed profit for the third consecutive quarter. It reported a profit of Rs 5 crore for the quarter ended September, compared to Rs 3 crore in the previous quarter, while income grew 52% year-on-year to Rs 208 crore.
