Digital payments company MobiKwik has received approval from the Securities and Exchange Board of India (Sebi) to float an initial public offering (IPO), sources told CNBT-TV18. MobiKwik had filed preliminary papers with market regulator Sebi in July this year to float an IPO.

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MobiKwik may launch the initial share sale before Diwali 2021, the sources said.

The company plans to raise Rs 1,900 crore through the IPO, including Rs 1,500 crore from the primary issuance.

If the IPO materialises, MobiKwik will be one of the first online payments companies to list their shares in India.

MobiKwik competes against companies like Paytm and Flipkart-owned PhonePe.

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The news comes at a time when startups are turning to the primary market to meet their capital requirements.

Paytm filed preliminary papers in July to float an IPO of up to Rs 16,600 crore, and is gearing up for a pre-Diwali initial share sale.

Earlier this year, Zomato made a stellar debut on Dalal Street with its shares listing at a 51 percent premium over the issue price of its IPO, which was subscribed 38 times.

Meanwhile, MobiKwik clocked net revenue of Rs 379 crore in FY20, up 134 percent on a year-on-year basis. The company has exuded confidence in hitting profitability this fiscal year.

(Edited by : Sandeep Singh)

First Published:Oct 8, 2021 12:12 PM IST