MobiKwik IPO: 7 crucial things to know from DRHP

MobiKwik IPO with a face value of ₹2, is an entirely fresh equity share issue without an offer for sale component.

Also Read: Mobikwik files for ₹700 cr IPO

The book-running lead managers (BRLM) for the IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, while Link Intime India Private Limited is serving as the offer registrar. The equity shares will be listed on the BSE and NSE.

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Here are 7 key things from the DRHP that investors might want to know:

MobiKwik IPO issue details

MobiKwik Systems intends to raise ₹700 crore from its initial public offering. The company may decide to proceed with a “pre-IPO placement” of additional specified securities, up to a total of ₹140 crore, through private placement, preferential allotment, rights issue, or any other method after consulting with the BRLM. The size of the fresh issue will be smaller if such placement is done.

MobiKwik has reduced the size of its issue from ₹1,900 crore to ₹700 crore and has refiled the draft documents with the SEBI. The company submitted the draft red-herring prospectus for a ₹1,900-crore IPO to SEBI earlier in July 2021.

Also Read: New Swan Multitech IPO opens next week, price band set at ₹62-66 apiece

MobiKwik IPO objective

A total of ₹250 crore from the proceeds of the new issue will go towards funding the expansion of the financial services sector, ₹135 crore towards funding the expansion of the payment services sector, ₹135 crore towards investments in data, machine learning, artificial intelligence, and other products and technology, ₹70.28 crore towards capital expenditures for the payment devices sector, and general corporate purposes.

MobiKwik IPO reservations

MobiKwik IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.

Also Read: Exicom Tele-Systems raises ₹71 crore via pre-IPO placement, allots 52.6 lakh shares to five investors

Mobikwik business

With over 18.29 million new users added annually between Fiscal 2021 and September 30, 2023, MobiKwik, the company’s flagship application, offers users access to a variety of payment options and financial products in digital credit, investments, and insurance.

MobiKwik IPO peers

The company’s listed peer is One 97 Communications Ltd (with a P/E of (23.11)), and listed global peers are Affirm Holdings,Inc (with a P/E of (15.74)), and PayPal Holdings, Inc (with a P/E of 28.11).

“Our company is among a small number of uniquely positioned players with business segments such as payments services and financial services. Hence, there are no directly comparable companies in India or globally, having similar business model and comparable size. However, for the purpose of this DRHP, the above companies (Indian and foreign in the listed and unlisted space) have been considered as peers of our company, considering similarities with certain aspects of our business,” explained MobiKwik.

MobiKwik IPO promoters

Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust are the company’s promoters.

MobiKwik IPO financials

The company’s revenue from operations for the fiscal year 2022–2023 increased to ₹539.47 crore from ₹526.56 crore in the previous fiscal year. From ₹128.16 crore in the fiscal year 2022 to ₹83.81 crore in the fiscal year 2023, the loss for the year dropped by 34.60%.

The revenue from operations for the six months that concluded on September 30, 2023, was ₹381.09 crore, and the profit after taxes was ₹9.48 crore.

Also Read: Ahmedabad-based Sanstar files DRHP for IPO with SEBI

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 05 Jan 2024, 05:21 PM IST