Fintech startup Mobikwik which filed papers for IPO in July may now defer its plans, according to news reports. Market regulator SEBI had subsequently approved the IPO plans on October 7.
Through the IPO, the Gurugram-based company planned to offer shares aggregating to Rs 1,900 crore. Out of the total, Rs 1,500 crore will be mopped up through fresh issue of shares, while Rs 400 crore-worth stocks will be offloaded through the Offer-for-Sale (OFS) route by existing shareholders.
“The IPO valuation has come down by as much as 30-40%,” sources were cited in a report in The Economic Times.
Paytm’s disappointing listing and continued underperformance since played a key role in the decision to defer the IPO plans, said persons to CNBC-TV18.
“The plan was first to hit the markets around Diwali, and then it (Mobikwik) also wanted to wait for the response to Paytm. Now it is unlikely to go ahead before January-February. It all depends on the markets now because timing has to be right,” said a person involved directly in the matter on the condition of anonymity, according to a report in CNBC-TV18.
