Your search for information about MobiKwik refiling IPO papers to seek Rs. 700 Crores ends here. MobiKwik, one of India's pioneers in providing FinTech services, had already filed for an IPO in 2021 but abandoned it, citing market conditions. Now, it has filed the DRHP, or draft red herring prospectus, again with SEBI to raise Rs. 700 crores, less than half of its previous IPO seeking Rs. 1,900 crores.
With the revenue of Mobikwik doubling from 3,023 to 5,611 million rupees from 2021 to 2023, many like you want to know the IPO details. Also, with good performance and favourable market conditions, the unlisted Mobikwik share has increased from around Rs. 170 in February 2023 to over Rs. 700 in February 2024.
So, check out all about the MobiKwik share price and the decision to file IPO papers again with SEBI to seek Rs. 700 crores from the public and how it will benefit the investors in the grey market to make huge profits from buying them and also while listing on the exchanges as the indexes are trading at all-time highs to get excellent returns.
What is MobiKwik?
One MobiKwik Systems Ltd started in 2009 and has become the unicorn FinTech company in India to revolutionise digital payments. Founded by IIT Delhi graduates as a payment service provider, it evolved to provide loans through its wallet with approval from RBI in 2013. As per the second quarter of 2023, ending September 30, MobiKwik had revenue of over Rs. 381.09 crores from its 146.94 million registered users. Also, it helps around 4 million merchants make easy and safe online and offline payments across India. Mobikwik had raised funds from Bajaj Finance, American Express, and others on its journey to become the top FinTech company in India.
What was the previous MobiKwik IPO, and why did it not happen?
Since Mobikwik expanded its digital payment business across India, it has raised funds from private investors, venture capitalists, and angel investors. After the demonetisation in 2016, its user base increased by 400%, from 45 million to over 150 million in 2017. Along with Paytm, Mobikwik conducted over 80% of the mobile wallet transactions in India in 2017. It expanded its services outside India in 2019 after partnering with DT One and offering loans through its wallet. Hence, Mobikwik filed its DHRP, or drafted a red herring prospectus, with SEBI, or the Securities and Exchange Board of India, to grow its business in November 2021. But it withdrew it, citing unfavourable market conditions that prevented the IPO from going through. That is not the only reason, as many IPOs were hitting the market then, including Paytm with a vast issue size of Rs. 18,000 crores and the issue price band from Rs. 2,080 to 2,150.
All to know about MobiKwik filing IPO papers again to seek 700 crores.
Having not been able to come out with an IPO in 2021, MobiKwik wants to try again to raise Rs. 700 crores, far less than the previous amount. It is because of its rapid rise in loan disbursals in 2023 to be around 9,000 crores compared to only Rs. 1,500 in 2022. Also, not all online platforms can have around 150 million registered users and continuously increase revenue yearly. Hence, DAM Capital Advisors Ltd and SBI Capital Markets Ltd are to be the book-running lead managers, and the registrar for the IPO is Link Intime India Pvt. Ltd. Though the IPO rising amount is fixed at Rs. 700 crores, its price band, lot size, and specific dates are to be announced soon. When the IPO, or initial public offering, is completed, you can get lucky at a lower price or buy it from the NSE and BSE.
On January 5, 2024, Mobikwik's spokesperson announced details of its second attempt at an IPO without disclosing the specific dates. Only fresh issues will be part of the Rs. 700 crore IPO of Mobikwik without any OFS or offer for sale. They announced that 75% of the initial public offering is for qualified institutional investors, 15% for noninstitutional investors, and less than 10% for retail individual investors. MobiKwik announced it would spend Rs. 250 crore out of Rs. 700 crore to fund its financial service business growth. And Rs. 135 crores for expanding its payment service business and Rs. 70 crores for capital expenditure. MobiKwik also plans to spend around Rs 100 crores to increase the merchant and customer base and increase revenue and profit.
How can investors benefit from the Mobikwik IPO?
Though becoming a unicorn FinTech company in India with hundreds of millions of registered users, the Mobikwik unlisted share price dropped after not going through with the IPO in 2021. However, with the recent announcement of the IPO in January 2024 and expectations of it rising in December, the unlisted Mobikwik share price rose from Rs. 350 to Rs. 700 in February 2024. With the doubling of the unlisted shares, even without Mobikwik announcing the specific dates and all other details, it is expected to rise more in the near short and long term. This is because of the smaller issue size of Mobikwik than its previous IPO issue size of less than half. Also, to invest the IPO-raised amount for developing the business, investors can benefit from the Mobikwik IPO.
Conclusion
Contact the consultant of the reputed unlisted share broker to know more details about MobiKwik filing IPO papers again to seek Rs. 700 crore to use for expanding all its business to increase its user base and hence revenue and profit for the share to get listed on the NSE and BSE at higher prices to get high yields for the safe investment.
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FAQs
What prompted MobiKwik to file for an IPO again?
MobiKwik's decision to file for IPO again was likely driven by favourable market conditions and the company's growth trajectory, aiming to raise Rs 700 crores.
What does the IPO filing entail for MobiKwik?
The IPO filing involves submitting detailed financial documents and a prospectus to regulatory authorities, outlining the company's financial health, operations, and plans.
How does MobiKwik plan to utilise the raised capital?
MobiKwik intends to utilise the funds raised through the IPO for various purposes, including expanding its market presence, investing in technology enhancements, and bolstering its product offerings.
What implications does MobiKwik's IPO filing have for investors?
MobiKwik's IPO filing presents an opportunity for investors to participate in the growth journey of a prominent FinTech player, potentially offering returns on investment as the company expands its operations and enhances its market position.
