MobiKwik files draft papers for Rs 1,900 crore IPO

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New Delhi: Digital payments startup One MobiKwik Systems on Monday filed preliminary papers with markets regulator Sebi to raise Rs 1,900 crore through an initial share sale. The initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 1,500 crore and an offer for sale of up to Rs 400 crore by promoters and existing shareholders, according to the Draft Red Herring Prospectus (DRHP).

Those offering shares through the offer are 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 Rupkrishan Taku and Bipin Preet Singh. The issue also includes a reservation for the company’s employees.

The company may also consider a pre-IPO placement of such number of equity shares for cash consideration aggregating up to Rs 400 crore at its discretion, as per the DRHP.

If the pre-IPO placement is completed, the number of equity shares issued following such a placement will be reduced from the fresh issue.

Proceeds from the fresh issue will be used towards funding organic as well as inorganic growth initiatives and general corporate purpose.

One MobiKwik Systems is a leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India.

The company is focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later.

ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India and Credit Suisse Securities (India) Private Limited have been appointed as merchant bankers to advise the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.