Digital payments platform One Mobikwik Systems Ltd has set the price band for its upcoming IPO at Rs 265-279 per share, with the public subscription scheduled from December 11 to 13. Anchor investors can bid starting December 10.
The IPO size has been trimmed for the third time, now targeting Rs 572 crore, compared to the initial plan of Rs 700 crore. At the upper price band, the company’s estimated market capitalization is Rs 2,165 crore. The shares will be listed on exchanges on December 18.
Fund Allocation
The proceeds from the IPO will be utilized for:
- Rs 150 crore for expanding its financial services business.
- Rs 135 crore for improving payment services.
- Rs 107 crore for R&D in AI, machine learning, and technology.
- Rs 70.2 crore for capital expenditure on payment devices.
Business Overview
Co-founded by Bipin Preet Singh and Upasana Taku, Mobikwik connects 161.03 million consumers with 4.26 million merchants, as of June 30, 2024. It provides services such as digital credit, investment, insurance, and payment services through UPI, wallets, and Zaakpay.
As of May 2024, Mobikwik is the largest wallet operator in India, with a leading market share of 23.11% in PPI wallet GTV (excluding Fast Tag). The company subsequently launched credit solutions such as MobiKwik ZIP and ZIP EMI, in addition to peer-to-peer lending through MobiKwik Xtra.
Financial Performance
For FY24, Mobikwik reported:
- Revenue: Rs 875 crore (up from Rs 539.46 crore in FY23).
- Net Profit: Rs 14.08 crore (recovery from a loss of Rs 83.81 crore in FY23).
In the June 2024 quarter, the company posted Rs 342.27 crore in revenue but reported a net loss of Rs 6.62 crore.
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Source: Moneycontrol
News Desk