Peak XV and ADIA-backed One MobiKwik Systems on Friday said it has fixed a price band of Rs 265-279 per equity share for its Rs 572- crore Initial Public Offering (IPO) that opens for subscription on December 11.
The company has cut down its IPO size for the third time since it announced listing plans three years ago from Rs 1,900 crore to Rs 572 crore.
The issue will close on December 13 and the bidding for the anchor portion will open for a day on December 10, said the company in a statement.
The IPO is wholly a fresh issuance of equity shares of up to Rs 572 crore with no any offer-for-sale portion, said the red herring prospectus.
In January, the company had filed for a Rs 700-crore IPO. Later, it reduced the size of the IPO to Rs 572 crore.
Bids can be made for a minimum of 53 equity shares and in multiples thereafter, it added.
According to the RHP, Peak XV Partners (formerly Sequoia Capital India) held a 16.7 per cent stake, while Abu Dhabi Investment Authority (ADIA) held a 2.8 per cent holding in Mobikwik.
The Gurugram-based firm is now on its second attempt at public issue, after its first effort in July 2021. Previously, the company dropped its IPO plans and withdrawn its draft papers as a result of unfavourable market conditions.
Of the net proceeds from the fresh issue, which amounts to Rs 150 crore, organic growth of its financial services business shall absorb Rs 135 crore and Rs 107 crore will be reserved for the development of research on artificial intelligence, machine learning and technology.
Besides this, Rs 70.2 crore of IPO fund also aims for capital expenditure towards the cost of payment devices as well as general corporate purposes.
MobiKiwik is the flagship application of the company that provides consumers with digital credit, investments, and insurance options through various payment products. It was founded by Bipin Preet Singh and Upasana Taku.
The company faces competition from major players like PhonePe, Paytm, Airtel Payments Bank, and Freecharge.
The digital payments firm posted a consolidated total income of Rs 890.3 crore for FY24 compared with Rs 561.6 crore in FY23 and Rs 543.2 crore in FY22.
The company has reported losses at Rs 128.16 crore and Rs 83.8 crore during FY22 and FY23 respectively. However, for FY2023-24, the company has reported a profit of Rs 14.08 crore.
SBI Capital Markets Ltd and DAM Capital Advisors Ltd are book running lead managers. While Link Intime India Pvt Ltd has been appointed as registrar for the IPO.
Shares for equity are proposed to be listed on the NSE and BSE.
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