Fintech major MobiKwik has reduced its initial public offering (IPO) size to ₹572 crore from ₹700 crore due to volatile market conditions and higher scrutiny by the regulator over fintech players, sources say.
The fintech firm has set IPO price band at ₹265-279 per share, with subscriptions opening on December 11 and closing on December 13. At the upper end of the price band, Mobikwik’s market capitalisation would be over ₹2,172 crore. Investors can bid for a minimum of 53 equity shares and in multiples of 53 equity shares thereafter.
Organic growth
The IPO is entirely a fresh issue of up to ₹572 crore and with no offer of sale component. The proceeds from its fresh issuance 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, machine learning and artificial intelligence and another ₹70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.
MobiKwik, founded by Bipin Preet Singh and Upasana Taku, offers payment services 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.
In a recent interaction with businessline, Taku said the company wants to launch new credit products like credit cards, vehicle loan and multiple loan products for small merchants, MSMEs and end consumers.
“Then we want to expand investment product suite. We recently launched Lens.AI, and we want to focus on insurance too. The intention is to provide all financial products to our users,” she said.