MobiKwik IPO: Things You Need To Know About INR 1900 Crores Offering

Digital payments firm MobiKwik has filed for an IPO of up to Rs 1,900 crore ($255 million) with the markets regulator on Monday. The MobiKwik IPO is the second digital payment platform after Paytm's filing for a Diwali-IPO. The digital wallet and payments company will raise Rs 1,500 crore in a fresh issue. Meanwhile, its existing investors will sell shares worth Rs 400 crore in a secondary issue. Sequoia India, its second-largest shareholder, will get close to Rs 95 crore from the sale of shares. Further, American Express, Cisco Systems, Baja Finance, and Tree Line Asia will also sell a portion of their shares.

5 Things You Need To Know About the MobiKwik IPO

MobiKwik IPO will have a fresh issuance of equity shares worth Rs 1,500 crore, as per its DRHP. It will also offer for sale upto Rs 400 crore by promoters and existing shareholders. Further, MobiKwik may also consider a pre-IPO placement of several equity shares for cash consideration aggregating up to Rs 400 crore at its discretion, as per the DRHP. Not only for the public, but MobiKwik IPO will also have a reservation for the company’s employees. The Gurgaon-based startup valued at $700 million in its previous equity funding round in April. It had raised Rs 150 crore ($20 million). With the INR 1900 Crore ($255 Crore) IPO, it is eyeing a valuation of $1 billion (Rs 7,459 crore).

Those offering shares through the offer are American Express, Bajaj Finance, Cisco Systems, Sequoia Capital IV, and Tree Line. Further, MobiKwik founders Upasana Rupkrishan Taku and Bipin Preet Singh will act as promoters too. ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India and Credit Suisse Securities (India) Private Limited are the merchant bankers to advise MobiKwik on the IPO. The company has announced to use the funds from the fresh issue towards funding organic as well as inorganic growth initiatives and general corporate purposes.

Unlike startups like Zomato and Paytm that are planning to launch their IPOs as a ‘publicly managed company’, Mobikwik said in the DRHP that it will list it as a ‘professionally managed company’.