Bengaluru: Following a gap of over 2 years, payment platform Mobikwik has once again filed its draft red herring prospectus with markets regulator Securities and Exchange Board of India to raise Rs 700 crore, the unicorn fintech firm said on Friday.
“The company did not find market conditions favourable to go ahead with the IPO last time,” an individual with knowledge of the matter revealed. The Gurugram-based company had earlier received approval for a public issue in 2021.
The initial public offering will consist of an entirely fresh issue of equity shares with a face value of Rs 2 apiece, the company said.
About Rs 250 crore from the proceeds will be diverted towards growth in the financial services business and Rs 135 crore utilised for funding growth in the payment services business. Furthermore, Rs 135 crore will be invested in data, machine learning, artificial intelligence, and product and technology; while Rs 70.28 crore will be channelled towards capital expenditure for the payment devices business, and general corporate purposes.
The company may however consider a pre-IPO placement of its securities to the tune of Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.
As of September 30, 2023, the company had 14.69 crore registered users. Its revenue from operations, on the said date, stood at Rs 381.09 crore will profit after tax amounted to Rs 9.48 crore.
SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO.
Published 06 January 2024, 00:41 IST