Mobikwik IPO: Check price band, shareholder quota, latest GMP and more – CNBC TV18

Gurugram-based One Mobikwik Systems has announced to launch its initial public offering (IPO) on Wednesday, December 11 and the three-day bidding for the issue will conclude on Friday, December 13.

The payment platform has fixed its price band in the range of ₹265-279 per shares for which investors can apply for a minimum of 53 equity shares and its multiples thereafter.

One Mobikwik Systems, which operates a platform business with a two-sided payments network consisting of consumers and merchants, plans to raise ₹572 crore through the IPO.

Mobikwik shares will carry a face value of ₹2 apiece.

The IPO is entirely a fresh issue of equity shares worth ₹572 crore, with no offer for sale component.

About 75% of the issue size has been reserved for institutional shareholders (QIBs), while 15% will be reserved for non-institutional shareholders. The remaining 10% of the shares in the IPO will be reserved for retail shareholders.

The net proceeds from the issue will be used for funding growth in the financial services business, and in the payment services business. The company will utilise the funds also for investment in data, ML and AI and product and technology and for capital expenditure for the payment devices business, and general corporate purposes.

The company was established by Bipin Preet Singh and Upasana Taku and its primary goal is to utilise technology to enhance financial inclusion for underserved populations in India. It caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

Additionally, through its subsidiary Zaakpay, it operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business.

MobiKwik has recently reached a significant milestone by reporting its first-ever full-year profitability for FY24.

The company, operating at a loss for 15 years, recorded a Profit After Tax (PAT) of ₹14.08 crore, a remarkable turnaround from the ₹83.81 crore loss it reported in FY23. Revenue from operations also saw a substantial rise, reaching ₹875 crore in FY24 compared to ₹540 crore in FY23.

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