One MobiKwik Systems IPO opens today at ₹265-₹279 price band
The ₹572-crore initial public offering of One MobiKwik Systems opens today and closes on Friday (December 13). The price band for the offer has been determined at ₹265-279 a share. Investors can bid for a minimum of 53 shares and multiples of 53 equity shares thereafter.
The issue is being made through the book-building process, wherein not less than 75 per cent of the issue is reserved for allocation on a proportionate basis to qualified institutional buyers, up to 15 per cent to non-institutional investors, and 10 per cent to retail investors.
As part of the IPO, One MobiKwik Systems on Tuesday garnered ₹257 crore from anchor investors by allocating 92 lakh shares at ₹279 a share.
Foreign and domestic institutions that participated in the anchor included marquee names such as Government Pension Fund (Norges Fund), Eastspring Investments, Morgan Stanley Investments, White Oak Capital, 360 One Asset & Wealth Management, HDFC MF, Axis MF, SBI MF, and SBI General Insurance.
The proceeds from the issue will be utilised to the extent of ₹150 crore for funding organic growth in its financial services business, ₹135 crore for funding organic growth in its payment services business, ₹107 crore for research and development investment in data, ML and AI and product and technology; ₹70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.
One MobiKwik Systems, founded by Bipin Preet Singh and Upasana Taku, primarily has key businesses that provide payment and financial services.
As of June 30, 2024, the platform has acquired 161.03 million registered users and enabled 4.26 million merchants to transact both online and offline. By continuously adding new offerings to its digital credit, investments, and insurance verticals, MobiKwik enhances the platform’s value for consumers, aiming to create a comprehensive and profitable ecosystem. This strategy contributed to a profit of ₹14.08 crore for the fiscal year ending March 31, 2024.
SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.
