One MobiKwik Sets Price Band For Rs 572 Crore IPO

The initial public offering of One MobiKwik Systems Ltd. is set to open next week at a price band of Rs 265 to 279 per share as the company looks to raise Rs 572 crore.

The IPO comprises only a fresh issue, with no offer-for-sale component, according to its price band advertisement on Friday. The offer size has been reduced from Rs 700 crore since the company filed its draft red herring prospectus with the market regulator.

The anchor investment round is scheduled on Dec. 10, a day before the offer opens for subscription. The IPO will open for bidding on Dec. 11 and close on Dec. 3.

Following the public issue, shares of One MobiKwik will be listed on the NSE and the BSE. Bids can be made for a minimum lot of 53 shares or in multiples thereof, according to the price band advertisement.

The Gurugram-based company plans to utilise proceeds from its fresh issue for the allocation, which includes Rs 150 crore to support growth in its financial services sector, Rs 135 crore for expansion in payment services, and another Rs 107 crore for investments in data, machine learning, artificial intelligence, and technology development, as per the RHP.

Additionally, Rs 70.28 crore will be directed towards capital expenditure for the payment devices business and general corporate purposes.

SBI Capital Markets Ltd. and DAM Capital Advisors Ltd. are the book running lead managers to the issue.

MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments and insurance. It was founded by Bipin Preet Singh and Upasana Taku.

One MobiKwik Systems wants to get a 10% market share in the entire UPI ecosystem, according to Co-Founder Bipin Preet Singh.

The IPO-bound fintech posted a profit of Rs 14.1 crore in the financial year-ended March 2024 compared to a loss of Rs 83.8 crore in the fiscal 2022-23. The company posted a revenue from operations of Rs 875 crore in FY24, versus Rs 540 crore in the fiscal 2023. The improved performance came with a better Ebitda profit of Rs 37.2 crore, compared to an Ebitda loss of Rs 55.9 crore.