Mobikwik cuts IPO size from Rs 1,900 cr to Rs 572 cr; founder Bipin Singh explains why

Anchor bidding for the IPO will begin on December 10, and the issue will close on December 13.

When asked about the rationale behind reducing the size of MobiKwik's IPO, Bipin Preet Singh, founder and CEO of the company, stated that MobiKwik no longer requires the same level of capital it once did.

"When we initially planned the fundraise, the market was different," said Singh to Moneycontrol on the sidelines of the IPO presser. "At that time, we were focused on growth at all costs. But today, the company has become profitable, and we don't need as much cash. We don't need to dilute so much anymore."

MobiKwik had initially filed for a Rs 1,900 crore IPO in July 2021 and then it further cut down the issue size to Rs 700 crore in January 2024. Now, the company is planning to raise Rs 572 crore. The issue is a 100 percent fresh issue with no OFS component.

Also read: MobiKwik sets price band of Rs 265-279 a share; cuts down IPO size for third time

The founder also said that in payments the margins are much lower but the market is much bigger for payments.

The company is also planning to expand its distribution arm, which is selling loans and mutual funds. "The aim is to lead with payments, get the users engaged, and then cross-sell other products like loans and mutual funds," Singh said.

Anchor bidding for the IPO will begin on December 10, and the issue will open for public on December 11 and close on December 13. The basis of allotment is scheduled for December 16, followed by the initiation of refunds and equity credit on December 17.

On the upper price band, the total market cap of the firm will be around Rs 2,165 crore.

The company plans to utilise the proceeds for various purposes, including Rs 150 crore for organic growth in its financial services business, Rs 135 crore for expanding its payment services, Rs 107 crore for research and development in AI, machine learning, and technology, and Rs 70.2 crore for capital expenditure on payment devices.

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