Gurugram-based One MobiKwik Systems Refiles DRHP For Rs 700 Cr IPO

The capital market regulator Sebi has received the Draft Red Herring Prospectus (DRHP) from Gurugram-based One MobiKwik Systems Limited, which aims to raise Rs 700 crore for its initial public offering (IPO). With a face value of Rs 2, the IPO is a completely new equity share offering without an offer for sale (OFS) segment.

The issue is being made through the book-building process, with the reservation as follows: no more than 15% of the issue for non-institutional investors, 10% of the net issue for retail individual bidders, and 75% of the net issue for qualified institutional buyers on a proportionate basis.

In consultation with the book-running lead managers, the company may decide to proceed with a "pre-IPO placement" of additional specified securities, which might involve any of the following methods: rights issue, preferential allotment, private placement, or any other manner that totals Rs 140 crore. Once this placement is finished, the size of the fresh issue will be less.

A total of Rs 250 crore from the fresh issue's proceeds will go towards funding the expansion of the financial services business, Rs 135 crore towards funding the expansion of the payment services business, Rs 135 crore towards investments in data, machine learning, artificial intelligence, and other products and technology, Rs 70.28 crore towards capital expenditures for the payment devices business, and general corporate purposes.

By September 30, 2023, 3.81 million retailers were able to process payments both online and offline thanks to the company's 146.94 million registered users. Although MobiKwik ZIP GMV (Disbursements) climbed by 354.86% between Fiscal 2021 and Fiscal 2023, its Payment GMV was up by 32.33% yearly.

The company's set of scaled products and capacity to keep up one of the lowest employee cost-to-revenue ratios among digital financial service platforms in Fiscal 2023 demonstrate its dedication to growth through cost-effective, technology-driven innovations, according to the RedSeer report quoted in the DRHP.

The company's revenue from operations for the fiscal year 2022-2023 climbed to Rs 539.47 crore from Rs 526.56 crore in the previous fiscal year. From Rs 128.16 crore in the fiscal year 2022 to Rs 83.81 crore in the fiscal year 2023, the net loss for the year dropped by 34.60%. The net revenue for the six months that ended on September 30, 2023, was Rs 381.09 crore, while the net profit was Rs 9.48 crore.

The registrar of the offer is Link Intime India Private Limited, and the book-running lead managers for the IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited. It has been proposed that the equity shares of the company will be listed on the NSE and BSE.