ACTION PUNJAB NEWS Desk: Mobikwik, a prominent payment platform, has once again submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchanges Board of India (SEBI) to initiate an initial public offering (IPO) aiming to raise Rs 700 crore.
The DRHP outlines that the IPO will consist entirely of a fresh issue amounting to Rs 700 crore, each equity share having a face value of Rs 2. Notably, the issue will not include an offer for sale (OFS) component. As detailed in the DRHP, Mobikwik intends to conduct a pre-IPO placement of shares valued at approximately Rs 140 crores before officially launching the issue, coordinated by the book running lead managers (BRLMs).
The BRLMs overseeing the Mobikwik IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, with Link Intime India Private Limited acting as the issue’s registrar. The company’s equity shares are proposed to be listed on both the BSE and NSE, according to the submitted documentation.
This marks Mobikwik’s second attempt to file its DRHP with SEBI to progress with an IPO. Their initial endeavor in July 2021 received approval from the market regulator.
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Mobikwik IPO update: Issue details await approval
While Mobikwik has submitted its Draft Red Herring Prospectus (DRHP) to SEBI for the IPO, crucial details including the price band, lot size, and specific dates remain pending. These particulars will only be disclosed upon the release of the RHP post-approval.
The Rs 700 crore IPO comprises solely of fresh issue shares, excluding any Offer for Sale (OFS) component. As outlined in the DRHP, the allocation strategy allocates 75 per cet to qualified institutional buyers, 15 per cent to non-institutional investors, and up to 10 per cent for retail individual buyers.
Out of the total proceeds of Rs 700 crore anticipated through the IPO, Mobikwik has designated Rs 250 crore for fostering growth in the financial services segment. Additionally, Rs 135 crore each is allocated for enhancing payment services and advancements in data and AI technology. A sum exceeding Rs 70 crore is earmarked for capital expenditure.
The filing specifies, “Our management will have discretion over specific activities funded by the proceeds. For example, we intend to allocate Rs 100 crore from the Net Proceeds towards acquiring new consumers and merchants on our platform.”
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(Inputs from agencies)
