One MobiKwik Systems Limited, the parent company of MobiKwik has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs. 700 crore through a fresh issue of shares. It is the company’s second attempt at an initial public offering (IPO).
The company had in July 2021, filed a DRHP for its IPO and had also received SEBI’s approval. However, it abandoned the plan citing weak market conditions, according to a report by The Economic Times. Also, the size of the proposed offer is lower than the 2021 issue which was planned at Rs. 1900 crore.
The shares offered are proposed to be listed on the stock exchanges- BSE and NSE. The book running lead managers of the issue include SBI Capital Markets Limited and DAM Capital Advisors Limited. While the registrar of the issue is Link Intime India Private Limited.
According to the DRHP, the equity shares of the company are of the face value of Rs. 2 each. The objectives of the MobiKwik IPO include utilisation of Rs. 250 crore from the proceeds of the new issue towards funding growth in its financial services business, Rs. 135 crore towards funding the expansion in its payment services business, Rs. 135 crore towards investments in data, machine learning, artificial intelligence, and other products and technology, Rs. 70.28 crore towards capital expenditures for the payment devices business, and general corporate purposes.
75% of the shares in the public issue has been reserved for Qualified Institutional Buyers (QIB), followed by 15% for Non Institutional Investors (NII), and 10% for Retail Investors.