SEBI approves MobiKwik's Rs 1,900 crore IPO Plan; check dates & other details here

Market regulator SEBI on Friday approved digital payments firm MobiKwik's application to launch an initial public offering (IPO), through which it plans to raise up to Rs 1,900 crore. The Gurgaon-based online company had filed the Draft Red Herring Prospectus (DRHP) for the IPO in July. The application has now been approved by the regulator.

According to the DRHP, digital payments firm MobiKwik plans to raise Rs 1,900 crore by offering Rs 1,500 crore through fresh issue of shares, while Rs 400 crore will be raised through Offer-for-Sale (OFS) of shares by existing shareholders. The proceeds from the fresh issue of shares will be used to fund organic as well as inorganic growth initiatives and other general corporate purpose.

Mobikwik IPO

The Offer-for-Sale shares will be from existing shareholders including 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. MobiKwik is a leading mobile wallet and the company is also a major Buy Now Pay Later (BNPL) player in India.

The company is currently focused on addressing the unmet credit needs of the fast-growing online transactors and is emphasising on improving the convenience of everyday mobile payments. The company is also pushing the benefits of Buy Now Pay Later in the Indian market. The IPO will further improve the company’s growth trajectory.

Mobikwik IPO date

The dates and other details of the IPO is yet to be decided. Last month, MobiKwik had said that its listing should provide bountiful rewards to its employees through the ESOPs issued to them. The company has so far reserved 4.5 million equity shares for the benefit of eligible employees under its ESOP 2014 Scheme. MobiKwik Chairperson, Co-Founder and COO Upasana Taku had earlier said that the total number of equity shares that would arise from the full exercise of options granted could tally upto seven per cent of the fully diluted outstanding shares. Mobikwik is yet to release an official statement regarding the developments.

With PTI inputs

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