Mobikwik sets IPO price band at Rs 265-279 per share

Digital payments platform Mobikwik Systems Ltd, which is gearing up for its initial public offering (IPO), has set the price band at Rs 265-279 per share.

The offering, which aims to raise Rs 572 crore, will open for subscription on December 11, 2024 and close on December 13, 2024.

At the upper end of the price band, Mobikwik's market capitalisation would be approximately Rs 2,167 crore.

Investors can bid in specific lot sizes depending on their category. Retail investors must apply for a minimum of 53 shares, while non-institutional investors have to bid for at least 742 shares. Qualified institutional buyers have a minimum lot size requirement of 3,604 shares.

According to the draft IPO filing, the issue consists entirely of fresh issue of equity shares, without any offer-for-sale component.

Around Rs 150 crore from the proceeds will be directed towards expanding its financial services business, while Rs 135 crore will be used to enhance payment services.

An additional Rs 135 crore is earmarked for data, machine learning, artificial intelligence, and technology development. Furthermore, Rs 70.28 crore will be allocated for capital expenditure in the payment devices sector, with the remaining funds reserved for general corporate needs.

Initially, in 2021, MobiKwik had planned a Rs 1,900-crore IPO, but it later reduced its fundraising goal. On January 4, the Gurugram-based company submitted its draft red herring prospectus to the market regulator with the goal of raising Rs 700 crore.

MobiKwik's revenue surged 62% to Rs 875 crore in FY24 from Rs 539 crore in FY23. The startup also bounced back to profitability with a net profit of Rs 14 crore in FY24, as opposed to the Rs 84 crore loss recorded in the previous fiscal year.

Feature image: MobiKwik founders Upasana Taku and Bipin Preet Singh