Mobikwik gets SEBI nod to float Rs 700 Cr IPO

Payments FinTech company Mobikwik has received final observations from the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise Rs 700 crore through an initial public offering (IPO). The IPO, with a face value of Rs 2, consists entirely of a fresh issue of equity shares with no offer-for-sale component. Mobikwik, in consultation with the book-running lead managers, may consider a further issue of specified securities, including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as "Pre-IPO placement". If such placement is completed, the fresh issue size will be reduced. The proceeds from the fresh issue, to the extent of Rs 250 crore, will be used for funding growth in the financial services business and Rs 135 crore for funding growth in the payment services business. Additionally, Rs 135 crore will be used for investment in data, ML and AI, products, and technology, and Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes. SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares will be listed on the BSE and NSE.