The issue will be open for subscription from December 11 to 13.
MobiKwik Systems on Tuesday said it has raised Rs 257 crore from anchor investors ahead of its initial public offering (IPO). These anchor investors include 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 PTI news, this issue with a price band of Rs 265-279 per share will be open for subscription from December 11 to 13.
The issue is open for bidding between 11th and 13th December.
According to the circular issued on the BSE website, MobiKwik has decided to allot 92.26 lakh equity shares to 21 funds at the rate of Rs 279 per share, which is also the upper end of the price band. That means the transaction size is Rs 257.4 crore. The IPO is entirely a fresh issue of equity shares worth up to Rs 572 crore, with no offer-for-sale (OFS) portion. According to the red herring prospectus (RHP), Peak XV Partners held a 16.7 percent stake in MobiKwik, while Abu Dhabi Investment Authority (ADIA) held a 2.8 percent stake.
Where will the funds raised be used?
According to the report, the proceeds from the fresh issue of Rs 150 crore will be used for organic growth in its financial services business, Rs 135 crore for expansion of its payments services and Rs 107 crore for research and development in AI, machine learning and technology. Will be done for. Rs 70.2 crore of the funds raised from the IPO will also be used for capital expenditure on payment instruments and general corporate purposes.
There was tough competition from these companies
The company is facing tough competition from major players including PhonePe, Paytm, Airtel Payments Bank and Freecharge. The digital payments firm reported consolidated total income of Rs 890.3 crore in FY2024, compared to Rs 561.6 crore in FY2023 and Rs 543.2 crore in FY2022. It faced losses of Rs 128.16 crore and Rs 83.8 crore in FY 2022 and FY 2023, respectively.
Let us tell you, this is the second attempt for a public issue by the Gurugram-based firm after its first attempt in July 2021. Earlier, the company had postponed its IPO plans and withdrawn its draft papers due to adverse market conditions.
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