Sequoia-backed MobiKwik refiles DRHP with Sebi for Rs 700 crore IPO

Online payments company One MobiKwik Systems Ltd has refiled its draft red herring prospectus (DRHP) with the markets regulator to raise Rs 700 crore from its initial public offering (IPO), after letting it lapse due to meltdown of new-age stocks. This IPO is less than half the previous issue size.

Previously, in 2022, MobiKwik planned to raise Rs 1,900 crore through its IPO, comprising a fresh issue of shares of up to Rs 1,500 crore and an offer for sale of up to IRs 400 crore. In the new DRHP, the company said it will consider a pre-IPO placement of Rs 140 crore. If this pre-placement is completed, the fresh issue size will be reduced.

According to the company's announcement, the IPO with a face value of Rs 2 is entirely a fresh issue of equity shares with no offer-for-sale component.

The proceeds from the fresh issue, up to Rs 250 crore, will be used to fund growth in the financial services business. Rs 135 crore will be used to fund growth in the payment services business and another Rs 135 crore for investment in data, machine learning, artificial intelligence, and products and technology.

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Another Rs 70.28 crore will be used for capital expenditure for the payment devices business and general corporate purposes.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO. Link Intime India Private Limited is the registrar of the offer.

As of September 30, 2023, the company has 146.94 million registered users and 3.81 million merchant accounts.

In the six months that ended on September 30, 2023, the company's revenue from operations was Rs 381.09 crore. Its profit after tax was Rs 9.48 crore. In 2022-23, the company's revenue was Rs 539.47 crore. However, it had reported a net loss of Rs 83.81 crore during the year.