Payment platform Mobikwik gets Sebi nod for Rs 700 crore IPO

Online payments firm One Mobikwik Systems Ltd on Monday received market regulator Sebi's approval to float its respective initial public offering (IPO). The company is looking to raise Rs 700 crore through its initial stake sale.

According to draft IPO papers, the issue will entirely be a sale of fresh equity shares with a face value of Rs 2 each with no offer-for-sale (OFS) component. "The net proceeds from the issue will be utilised towards funding growth in the financial services business; growth in the payment services business; investment in data, ML and AI and product and technology; capital expenditure for the payment devices business; and general corporate purposes," it stated.

Mobikwik was established by Bipin Preet Singh and Upasana Taku, with their prior experience in developing technology and financial products. It caters to businesses and merchants with extensive payments and financial services.

The company's flagship application (Mobikwik) provides consumers access to various payment options and financial products in digital credit, investments, and insurance. It operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its payment aggregator (PA) business through its subsidiary Zaakpay.

It has reserved 75 per cent of the net offer for the qualified institutional bidders, while non-institutional investors have 15 per cent of shares allocated towards them. Remaining 10 per cent of the equity shares will be allocated for the retail investors of the issue.

SBI Capital Markets and DAM Capital Advisors are the book-running lead managers for the IPO and Link Intime India is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.