Cyril Amarchand Mangaldas advises Mobikwik on ₹572 crore IPO

Cyril Amarchand Mangaldas (CAM) advised fintech giant Mobikwik (One Mobikwik Systems Limited) on its Initial Public Offering (IPO) of equity shares which aggregating to ₹572 crore.

Cyril Amarchand Mangaldas advised Mobikwik in their IPO as their legal counsel.

The transaction team comprised of Manan Lahoty (Partner & Head - Capital Markets), Abhiroop Lahiri (Partner), and Puneet Passi (Partner), with the support from Medhashree Verma (Associate), Ritvik Maheshwari (Associate), Kanika Bhakhna (Associate) and Rukman Banka (Associate).

The MobiKwik IPO consisted of a fresh issue of 20,501,792 shares, raising up to ₹572 crore. It was offered at a price band of ₹265-₹279 per share with a lot size of 53 shares, drawing significant interest from investors.

The IPO received overwhelming demand, being oversubscribed 119.38 times by the subscription close on December 13, 2024. It was listed in the exchanges on December 18.

As per the Red Herring Prospectus (RHP), MobiKwik intends to utilize the proceeds from the IPO to drive growth in its financial and payment services businesses, invest in technologies such as artificial intelligence, machine learning, and data analytics, and enhance its product development. Additionally, the funds will be allocated for capital expenditure in its payment devices business and general corporate purpose

Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik is a leading Indian financial technology (fintech) company offering a wide range of digital payment and financial services. Initially launched as a mobile wallet, MobiKwik has evolved into a comprehensive platform, enabling users to recharge mobiles, pay utility bills, and make online or offline purchases.

The platform supports UPI payments, allowing users to link their bank accounts for direct transactions. Additionally, MobiKwik provides a "Buy Now, Pay Later" (BNPL) service called "Zip," offering instant credit for purchases with flexible repayment options.

Beyond payments, MobiKwik also caters to financial needs by offering personal loans, insurance products (health, accidental, and cyber), and investment opportunities in mutual funds and digital gold. For businesses, it provides merchant payment solutions to accept payments via wallets, UPI, and cards.

The company is also known for its co-branded prepaid cards and frequent cashback rewards to enhance user engagement.

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