One MobiKwik Systems, a Gurugram-based payments network, has submitted its Draft Red Herring Prospectus (DRHP) with capital market regulator SEBI for its initial public offering (IPO) intending to generate ₹700 crore.

The IPO, involving equity shares with a face value of ₹2, is entirely a fresh issue with no offer-for-sale component. The issue allocation will proceed on a proportionate basis: 75% to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail individual bidders.

In tandem with the book-running lead managers, the company may contemplate a further issue of specified securities such as private placement, preferential allotment, or rights issue aggregating to Rs 140 crore as “Pre-IPO placement”.

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The company will utilise the proceeds from the fresh issue, amounting to ₹250 crore, for the expansion of financial services, investment in data, ML and AI, and product and technology, among other corporate purposes.

Established by Bipin Preet Singh and Upasana Taku, MobiKwik’s mission is to enhance financial inclusion for underserved populations in India. The company offers extensive payments and financial services to businesses and merchants.

MobiKwik’s flagship application provides consumers with a range of payment options and financial products. It registers an average of 18.29 million new users annually. As of September 2023, MobiKwik boasts 146.94 million registered users and has enabled 3.81 million merchants to conduct online and offline payments.

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

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