Sources indicated that MobiKwik is expected to launch the IPO before Diwali (November 4) and is likely to fetch a valuation of $1 billion.
“It will be over $1 billion, but they (MobiKwik) are yet to finalize the price band and are looking at whether the valuation can exceed $1 billion,” said a person familiar with the company’s vision.
Mobikwik was last appreciated
about $700 million In its last funding round in April and eyeing a valuation of $1 billion when it filed its draft IPO papers for its public market listing,
ETtech reported in July.
The company is said to have drawn interest from sovereign wealth funds and financial investors to invest in its IPO. Anchor investors are allotted shares at a fixed price a day before the IPO. This is an indicator of the demand and popularity of the IPO.
When contacted, MobiKwik Cofounder Bipin Preet Singh declined to comment on the story.
The Gurugram-based company is one of a growing list of consumer internet firms, including Paytm, Nykaa and PolicyBazaar, eyeing a stock market debut this year. Food-delivery platform Zomato triggered the IPO boom among Indian consumer startups when it launched a
stellar debut in Indian public markets in July.
MobiKwik’s draft IPO documents show that it intends to raise around Rs 1,500 crore through a primary share sale, while the rest will be a secondary transaction where existing investors will sell stake. According to the draft Red Herring Prospectus (DRHP), Singh and Upasana Taku There is a plan to sell shares worth over Rs 191 crore in the secondary sale.
Launched in 2009 by Singh and Taku, MobiKwik has included Sequoia Capital India, Bajaj Finance, American Express, Cisco and Abu Dhabi Investment Authority among its investors.
And
informed of Earlier on Friday, MobiKwik’s big rival Paytm is also in the race to get Sebi’s nod for its $2.2 billion IPO and start trading as a public firm here before Diwali.