Mobikwik and Waaree Energies have received approval from the Securities and Exchange Board of India (SEBI) to proceed with their Initial Public Offerings (IPOs). SEBI issued observation letters on September 19, 2024, signifying that both companies can now launch their IPOs within one year from the date of the letter.
Mobikwik's IPO Details
Mobikwik, a prominent payment service provider backed by Bajaj Finance, Peak XV Partners, Abu Dhabi Investment Authority, and Sequoia Capital, had filed its draft red herring prospectus (DRHP) on January 4, 2024. The company is planning to raise ₹700 crore through the IPO, consisting entirely of fresh issue of equity shares, with no offer-for-sale (OFS) component.
Founded by Bipin Preet Singh and Upasana Taku, Mobikwik is one of India's leading fintech companies, competing with giants like One 97 Communications (Paytm) domestically and Affirm Holdings and PayPal Holdings globally.
Before the IPO, Mobikwik might undertake a pre-IPO placement to raise around ₹140 crore. If the pre-IPO placement is successful, the size of the fresh issue will be reduced accordingly.
As of its latest data, Mobikwik has acquired over 156 million registered users and supports more than 4.1 million merchants in both online and offline payment processing. It offers services across digital credit, investments, and insurance segments.
Utilization of IPO Proceeds by Mobikwik
The company plans to allocate the IPO proceeds towards the following:
- ₹250 crore for expanding its financial services business.
- ₹135 crore for enhancing its payment services.
- ₹135 crore for investment in data, machine learning (ML), artificial intelligence (AI), and technology development.
- ₹70.3 crore for improving its payment devices business.
- The remaining funds will be used for general corporate purposes.
Waaree Energies' IPO Details
Waaree Energies, a leading manufacturer of solar photovoltaic (PV) modules, had filed its draft papers with SEBI on December 28, 2023. The company's IPO is a mix of both fresh issue and offer-for-sale (OFS). Waaree plans to issue fresh equity shares worth ₹3,000 crore and sell 32 lakh shares through the OFS.
Under the OFS, Waaree Sustainable Finance, a promoter entity, will offload 27 lakh shares, while non-promoter entities Chandurkar Investments and Samir Surendra Shah will sell 5 lakh shares collectively.
Since its operations began in 2007, Waaree Energies has seen rapid growth in its manufacturing capabilities. The company expanded its aggregate installed capacity from 2 gigawatts (GW) in fiscal 2021 to 12 GW by June 2023. Waaree operates four manufacturing facilities in Gujarat, producing solar PV modules using multicrystalline cell technology, monocrystalline cell technology, and other advanced technologies like Tunnel Oxide Passivated Contact (TopCon), which help enhance efficiency by minimizing energy loss.
Utilization of IPO Proceeds by Waaree Energies
Waaree plans to use the IPO proceeds for two key purposes:
- ₹2,500 crore will be allocated for the establishment of a 6 GW facility in Odisha for the production of Ingot Wafer, solar cells, and solar PV modules.
- The remaining funds will be earmarked for general corporate purposes.
Conclusion
The approval from SEBI marks a significant milestone for both Mobikwik and Waaree Energies. Mobikwik aims to further its presence in the fast-growing fintech space, while Waaree Energies looks to expand its leadership in the solar energy sector, competing with companies like Websol Energy Systems. Both IPOs are expected to attract substantial investor interest, given their prominent market positions and growth trajectories.
