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Foreign and domestic institutions who participated in the anchor round included Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC Mutual Fund (MF), Axis MF, SBI MF and SBI General Insurance, according to a circular uploaded on BSE’s website.
According to the circular, MobiKwik has decided to allocate 92.26 lakh equity shares to 21 funds at ₹279 apiece, which is also the upper end of the price band. This translates into the transaction size to ₹257.4 crore.
The IPO is entirely a fresh issuance of equity shares worth up to ₹572 crore with no offer-for-sale (OFS) portion. The issue, with a price band of ₹265-279 per share, will be open for subscription during December 11 to 13.
As per the Red Herring Prospectus (RHP), Peak XV Partners (formerly Sequoia Capital India) owned a 16.7% stake, while Abu Dhabi Investment Authority (ADIA) held a 2.8% holding in MobiKwik.
Proceeds from the fresh issue worth ₹150 crore will be used for organic growth in its financial services business, ₹135 crore for expanding its payment services and ₹107 crore for research and development in AI, machine learning, and technology. Funds from the IPO worth ₹70.2 crore will also be used for capital expenditure on payment devices and general corporate purposes.
This is the second attempt by the Gurugram-based firm for the public issue following its first attempt in July 2021. Earlier, the company shelved its IPO plans and withdrew its draft papers due to unfavourable market conditions.
MobiKwik, the company’s flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance.
It was founded by Bipin Preet Singh and Upasana Taku. The company faces stiff competition from major players, including PhonePe, Paytm, Airtel Payments Bank and Freecharge.
The digital payments firm reported a consolidated total income of ₹890.3 crore in FY24 compared to ₹561.6 crore in FY23 and ₹543.2 crore in FY22.
It incurred losses amounting to ₹128.16 crore and ₹83.8 crore in FY22 and FY23, respectively. However, for the financial year 2023-24, the company posted a profit of ₹14.08 crore.
SBI Capital Markets and DAM Capital Advisors are the book-running lead managers.
The company’s equity shares are proposed to be listed on the BSE and NSE.
