MobiKwik has received markets regulator Sebi’s approval to launch an initial public offering, through which it plans to raise up to Rs 1,900 crore. The Gurgaon-based company had filed the Draft Red Herring Prospectus (DRHP) for the Initial Public Offering (IPO) with Sebi in July.
Through the IPO, the company plans to offer shares aggregating to Rs 1,900 crore. Out of the total, Rs 1,500 crore will be mopped up through fresh issue of shares, while Rs 400 crore-worth stocks will be offloaded through the Offer-for-Sale (OFS) route by existing shareholders. According to merchant banking sources, Sebi has approved MobiKwik’s plan for the IPO.
There was no immediate response from the company to a query seeking comments on Sebi approval. American Express Travel Related Services Company Inc, Bajaj Finance, Cisco Systems (USA) Pte Ltd, Sequoia Capital India Investment Holdings III, Sequoia Capital India Investments IV, Tree Line Asia Master Fund (Singapore) Pte Ltd, as well as the company’s promoters — Upasana Taku and Bipin Preet Singh — will be selling shares through the IPO.
Proceeds from the fresh issue of shares will be used towards funding organic as well as inorganic growth initiatives and general corporate purpose. One MobiKwik Systems is a leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India. The company is focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later.
Last month, MobiKwik said its listing should provide bountiful rewards to its employees through the ESOPs issued to them. The company, under its ESOP 2014 Scheme, has reserved 4.5 million equity shares for creating a pool of ESOPs for the benefit of eligible employees. MobiKwik Chairperson, Co-Founder and COO Upasana Taku had said the number of equity shares that would arise from the full exercise of options granted implies 7 per cent of the fully diluted outstanding shares.
“This 7 per cent compares to less than 2 per cent holding for most other internet companies that are coming up for listing… Over the last decade, MobiKwik has grown on the strength of its employees to become a leading fintech player in India. “As we cement our presence and leadership further, we wanted to acknowledge and reward our employees for their efforts,” she had said.