Mobikwik has refiled its IPO Draft for Rs. 700 Crores

Mobikwik is one of India’s largest mobile wallets with a buy now, pay later service led by the husband-wife duo Bipin Singh and Upasana Taku. With over 140 million registered users and 4 million merchants, it is backed by Abu Dhabi Investment Authority, American Express, and Sequoia Capital. The company became profitable in 2021 and was ready to join the ranks of its bigger competitor Paytm which went public in November 2021. The initial ambition to launch its IPO came to a halt in 2022 after the challenging experience of Paytm even though Mobikwik had received approval from SEBI, which is the market regulator for its Rs. 1900 crore IPO, with a fresh issue of 1,500 crore and an Offer-for-sale (OFS) of Rs. 400 crore. However, the company has initiated the process of filing for IPO after it recorded a consolidated profit of Rs. 5 crores in the third quarter of 2023. The company has submitted a revised red herring prospectus to SEBI for its IPO with a target to raise Rs. 700 crore, which is 50% lower than its previous planned issue size of Rs. 1900 crores. DAM Capital Advisors and SBI Capital Markets Ltd. are acting as the book-running lead managers for Mobikwik’s IPO, along with Link Intime India Private Ltd. as the registrar. Mobikwik share prices will be listed on both NSE and BSE. The company will continue to monitor its financial position and performance for its stable public listing.Why is Mobikwik opting for an IPO listing now?This is Mobikwik’s second attempt to go public, as previously the company had deferred its listing plans due to the unfavorable market conditions faced during main competitor Paytm’s IPO listing. This time, the IPO consists of a fresh issue of equity shares with a face value of Rs. 2, wherein 75% of the IPO will be allocated on a proportional basis to the qualified institutional buyers, 15% to the non-institutional buyers, and the remaining 10% to the retail investors. There are additional considerations for further issues of shares for private placements, preferential allotment, and right issues for Rs. 140 in the pre-IPO placement. How does Mobikwik plan to utilize the funds raised through its IPO?Out of the total raised funds from the fresh issues, Rs. 250 crores will be utilized towards expanding Mobikwik’s financial services business, Rs. 135 crores will be used for expanding payment services, Rs. 135 will be used for investments made in the field of data technology, machine learning, big data analytics, deep data science, artificial intelligence, and in developing the product’s technology. Around Rs 70 crores are planned for meeting the capital expenditure and the remaining for operational purposes. What potential does Mobikwik's IPO hold for investors and the company?MobiKwik IPO holds tremendous potential for both investors and the company. For the investors, the IPO provides an excellent opportunity to participate in the growth trajectory of one of India’s leading fintech players and digital payment services with strong fundamentals that indicate promising prospects. For the company, the IPO unlocks access to capital markets and enhances its liquidity and brand visibility, positioning it for fast growth against its competitors. Post-IPO listing, Mobikwik intends to invest in technological upgrades and product development initiatives to remain sustainable and competitive in this industry. Interested in Buying Mobikwik Unlisted Shares?Starting as a digital wallet, Mobikwik has evolved into a fintech platform that includes diverse financial services such as credit, insurance, digital gold, and mutual funds investment facilities in addition to its existing services such as payment of bills and other digital payments. Mobikwik’s unlisted share price is currently at Rs. 600, an attractive entry point for potential investors. With the company’s recent profitability, existing shareholders may get a better return after the IPO is listed. Investing now in the unlisted market through Stockify will present a better opportunity for early investors.