Latest News | Will List at the Right Time, Says Mobikwik

New Delhi, Nov 23 (PTI) Fintech major Mobikwik, which has received Sebi approval to launch an initial public offering (IPO) to raise up to Rs 1,900 crore, on Tuesday said it will list at the "right time".

The statement came in the backdrop of reports that MobiKwik was looking at delaying its IPO by a few months as it struggles to find foreign institutional investors at the right valuation. Paytm's lacklustre listing and underperformance is also said to have dented investor sentiment for MobiKwik.

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“MobiKwik has a unique DNA – it was bootstrapped for the first 4 years and has achieved its current scale of 101 million users (as of March 2021) having spent only USD 100 million since inception," Mobikwik said in response to a detailed query on its IPO plans.

Stating that it has always adopted a sustainable growth strategy, Mobikwik said it is "witnessing strong business growth, has a clear path to profitability and will list at the right time.”

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"The company is focused on Buy Now Pay Later (BNPL) for daily life payments and has the largest number of pre-approved BNPL users in India at 22.3 million (as of March 2021)," the company added.

The Gurugram-based company had filed the Draft Red Herring Prospectus (DRHP) for the IPO with the Securities Exchange Board of India (Sebi) in July. The capital market regulator has approved MobiKwik's plan for the IPO.

Through the IPO, the company plans to offer shares aggregating to Rs 1,900 crore. Out of the total, Rs 1,500 crore will be mopped up through fresh issue of shares, while Rs 400 crore-worth stocks will be offloaded through the Offer-for-Sale (OFS) route by existing shareholders.

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 Taku and Bipin Preet Singh — will be selling shares through the IPO.

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

Shares of One97 Communications Ltd on Thursday made a weak market debut and tumbled over 27 per cent from the issue price of Rs 2,150. On Monday, the scrip had dropped nearly 14 per cent to Rs 1,350.35 apiece. After declining for two days, shares of One 97 Communications gained nearly 10 per cent to Rs 1,494.95 apiece on Tuesday.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)