Digital Payment Company, MobiKwik Files For Share Sale Of Rs1,900 Crore

• ByAyushi Ray     |    July 13, 2021

Digital Payment company, MobiKwik files for ₹1,900 crore share sale with the market regulators, joining the big league of companies to open up for public sharing at the end of this year, or beginning of next year. The MobiKwik IPO comprises the sale of ₹1,500 crore worth of new shares and an offer for sale of ₹400 crore worth of stock by its promoters and shareholders.Tech startups such as MobiKwik are rushing to take advantage of the positive sentiments created by a record-breaking stocks rally, burgeoning public interest in technology stocks and the accelerated adoption of online services because of the pandemic in the past year. Food delivery platform Zomato Ltd’s ₹9,375 crore IPO will open for subscription on 14 July, while other startups such as online cosmetics brand Nykaa and insurance aggregator PolicyBazaar are expected to file their draft IPO papers with the Securities and Exchange Board of India later this month. On Monday, shareholders of rival brand Paytm,  approved its ₹16,600 crore IPO. 

Among MobiKwik’s shareholders participating in the offer for sale are American Express Travel Related Services, which plans to sell shares worth as much as ₹9.98 crore, Bajaj Finance ( ₹68.98 crore), Sequoia Capital ( ₹95 crore), Cisco Systems ( ₹11.48 crore), Tree Line Asia Master Fund Pte ( ₹24.41 crore) and MobiKwik co-founders Bipin Preet Singh ( ₹113.33 crore) and Upasana Taku ( ₹78.82 crore). Singh and Taku hold 20.21% and 14.31% in the company, respectively. Bajaj Finance owns 13.86%, while Sequoia Capital India Investment has 13.46%. ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jefferies India will manage MobiKwik’s share sale. On February 22, Mint first reported that MobiKwik plans to go public and has hired investment banks ICICI Securities and IIFL, besides a few law firms, to kick-start work on the draft red herring prospectus.

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