One MobiKwik Systems Limited, a payment platform, has filed its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to raise Rs 700 crore via an initial public offering (IPO).
The IPO, having a face value of Rs 2, entirely comprises fresh issue equity shares, excluding any offer for sale component.
The issuance follows the book-building process. At least 75 per cent of the shares will be proportionally allocated to qualified institutional buyers, while up to 15 per cent will be accessible for non-institutional investors. Additionally, a maximum of 10 per cent of the shares will be available for allocation to retail individual bidders.
The company, along with the book-running lead managers, may consider an additional issuance of specified securities amounting to Rs 140 crore via methods like Pre-IPO placement (private placement, preferential allotment, rights issue, etc.). If executed, this placement could decrease the size of the fresh issue.
Fresh Issue Funds Allocated: Expansion, Tech Investment, and General Purposes
The funds raised from the fresh issue are allocated as follows: Rs 250 crore will support the expansion of the financial services business, Rs 135 crore will fuel growth in the payment services sector, another Rs 135 crore will be invested in data, machine learning (ML), artificial intelligence (AI), and product and technology development.
Additionally, Rs 70.28 crore is designated for capital expenditure in the payment devices business, and the remainder will be used for general corporate purposes.
Financial Highlights
In fiscal year 2022–23, the company reported a surge in revenue from operations, reaching Rs 539.47 crore compared to Rs 526.56 crore in fiscal year 2021–22. Furthermore, the loss for the year decreased by 34.60 per cent, dropping from Rs 128.16 crore in fiscal year 2022 to Rs 83.81 crore in fiscal year 2023.
As of September 30, 2023, revenue from operations for the six-month period totaled Rs 381.09 crore, accompanied by a profit after tax of Rs 9.48 crore.
