MobiKwik IPO — Should You Subscribe?

Continuing the IPO trail, yet another company is all set to go public. MobiKwik with approximately 101.37 mn. registered users and over 3.44 mn. e-commerce, physical retail, and biller partners as of 31 March 2021 has submitted its offer documents to SEBI. Continue reading more about this company to analyse and decide whether to subscribe to its upcoming IPO or not. Read on!

About MobiKwik

Mobikwik, founded in 2009, is a technology-driven Fintech firm that is one of India’s leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) companies.

This company was incorporated under the name ‘One MobiKwik Systems Private Limited’ on 20 March 2008 at New Delhi as a private limited company, under the Companies Act, 1956. Thereafter, it was converted into a public limited company, and the name of the company was changed to ‘One MobiKwik Systems Limited’ on 25 June 2021.

Operations of the company

The business operations of the company are organised into three key segments:

BNPL — Consists of MobiKwik Zip and Zip EMI, which give middle-class Indians with accessible and cheap small-ticket credit for everyday payments as well as discretionary shopping.

Consumer Payments — Comprising MobiKwik Wallet, a mobile payment app.

Payment Gateway — Includes Zaakpay, a payment gateway aggregator that provides online retailers with end-to-end payment solutions.

The firm is focusing on India’s fast-growing online payments sector by enabling everyday mobile payments as well as the benefits of Buy Now Pay Later (BNPL) offers.

Promoter and investors exiting their shares

Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust are the company promoters.

The following is the list of promoters/investors selling their shares:

• American Express Travel Related Services Company is selling equity shares worth up to Rs. 99.82 mn.
• Bajaj Finance Limited is selling equity shares worth up to Rs. 689.81 mn.
• Bipin Preet Singh is selling equity shares worth up to Rs. 1,113.33 mn.
• Cisco Systems (USA) Pte. Ltd. is selling equity shares worth up to Rs. 114.84 mn.
• Sequoia Capital India Investment Holdings III is selling equity shares worth up to Rs. 208.79 mn.
• Sequoia Capital India Investments IV is selling equity shares worth up to Rs. 741.12 mn.
• Tree Line Asia Master Fund (Singapore) Pte. Ltd. is selling equity shares worth up to Rs. 244.12 mn.
• Upasana Rupkrishan Taku is selling equity shares worth up to Rs. 788.16 mn.

About MobiKwik IPO

• This IPO is a 100% book building offer (the process by which an underwriter attempts to determine the price at which an IPO will be offered).
• MobiKwik IPO is likely to be listed on the BSE and NSE.
• The offer comprises a fresh issue of equity shares by the company aggregating up to Rs. 15,000 mn and an offer for sale aggregating up to Rs. 4,000 mn.

Book running lead managers and registrar of the MobiKwik IPO

The joint global coordinators and lead managers of the MobiKwik IPO are ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, Jefferies India Private Limited.

The issue’s registrar is Link Intime India Private Limited.

Reservation of MobiKwik IPO for various investor categories

• 10% is the maximum subscription amount reserved for retail investors.
• 15% is reserved for the Non-Institutional bidders (NII).
• 75% is reserved for the Qualified institutional buyers (QIBs), wherein 60% is for anchor investors, 1/3rd of which is reserved for domestic mutual funds only.

Continue to read the objects, financials, peer comparison, strengths and risks of MobiKwik.