Fintech firm MobiKwik trims IPO size again, sets price band at Rs 265-279

Digital payments firm MobiKwik has reduced its IPO size to Rs 572 crore, marking its third revision.

The IPO, set to launch on Dec. 11, will feature a price band of Rs 265-279 per share, with anchor bidding commencing on Dec. 10. Subscriptions will close on Dec. 13, and the stock listing is slated for Dec. 18.

This comes after MobiKwik initially filed for a Rs 1,900 crore IPO in 2021, later revised to Rs 700 crore in January 2024. Market conditions and subdued public market performance of peer startups led to these changes.

IPO details and objectives

MobiKwik aims to raise Rs 572 crore via a fresh issue of equity shares, with proceeds allocated across key business areas, including Rs 150 crore for financial services expansion, Rs 135 crore for payment business growth, Rs 107 crore for R&D in AI, ML, and tech development, Rs 70.2 crore for capital expenditure on payment devices.

The firm has reserved 75% of the issue for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors. Investors can bid for a minimum lot size of 53 shares, costing Rs 14,787 at the upper price band.

What does MobiKwik do?

Founded by Bipin Preet Singh and Upasana Taku, MobiKwik serves as a bridge to financial inclusion for underserved communities. It connects 161.03 million users with 4.26 million merchants, offering services like digital wallets, UPI, peer-to-peer lending, and credit products.

MobiKwik is India’s largest wallet player, with a 23.11% market share in PPI wallet transactions as of May 2024.

The company recorded a robust 62% revenue growth in FY24, generating Rs 875 crore, up from Rs 539 crore in FY23. MobiKwik achieved a net profit of Rs 14.08 crore in FY24, rebounding from an Rs 83.81 crore loss in FY23. However, it posted a net loss of Rs 6.62 crore in the first quarter of FY25 despite revenues of Rs 342.2 crore.

SBI Capital Markets and Dam Capital Advisors (Formerly IDFC Securities) are the book-running lead managers of the Mobikwik IPO, while Link Intime India Private Ltd is the registrar for the issue.