Mobikwik IPO is not happening this quarter
Mobikwikwill not be heading for its IPO in the January to March quarter due to unstable market conditions arising globally.
- Mobikwik had received SEBI approval for its IPO back in November 2021 and has the option to go public by November this year.
- Several analysts have also emphasized that many IPOs may get delayed due to the ongoing conflict between Russia and Ukraine.
AdvertisementIndian payment service provider Mobikwik will not be heading for its initial public offering (IPO) in the January to March quarter due to unstable market conditions arising globally.
“As you can see, they [markets] are fairly up and down and unstable. And not just in India but even globally. Now thanks to the Ukraine-Russia war cry, I think, aur he hone walla hai [the instability is likely to extend]. I don’t think it will be possible for any tech companies to IPO anytime soon, definitely not in the next couple of months,” Upasana Taku, cofounder of Mobikwik told Business Insider.
“But it is definitely a target for us to get to the public markets. We have the SEBI approval, our numbers even for the December quarter are fantastic… We are ready. Business performance is strong, SEBI approval is there. But the markets are not ready so we have to make sure that we continue building the platform and wait for the right time,” she added.
Mobikwik had received Securities and Exchange Board of India’s (SEBI) approval for its IPO in November 2021. The company had previously also emphasised that they are ready to go for public listing with stronger financials, however, the company would be jumping into the public market once the conditions are favourable.
It is important to note that a company can go for an IPO within 12 months of receiving SEBI’s approval. In this case, Mobikwik has the opportunity to hit the public market by November 2022.
The company intends to raise ₹1,900 crore through this IPO, according to Mobikwik’s draft red herring prospectus (DRHP). Investors like American Express, Bajaj Finance, Cisco System, Sequoia Capital and Treeline Asia will be selling a part of their shareholdings, the document has revealed.
Apart from Mobikwik, other Indian tech companies like hospitality giant OYO, logistics company Delhivery and ecommerce giant Snapdeal are also looking to go public this year. However, these companies are yet to get SEBI’s approval on their IPO.
Several analysts have also emphasised that many IPOs may get delayed due to the ongoing conflict between Russia and Ukraine. To add to this, the frequent selling of foreign institutional investors, weak market condition and upcoming manmont IPO from LIC are other factors that may push companies towards other directions.
Companies fear that IPOs won’t get a good response and remain undersubscribed, which may also lead to weak listing gains for the investors.
As long as Mukesh Ambani is there to rescue, the market doesn't care about Future Retail's financial stress
AdvertisementIndian startups raised around $1 billion a week in January and February
Markets remain worried as energy rich Russia faces harsh sanctions from western countries
Popular on BI
- 'Quiet quitting' is a bad idea, experts say. Here are 6 things you can do instead to get the same results if you're looking for better work-life balance – or to lighten your workload
- Wipro, Infosys, Tech Mahindra revoke offer letters given to freshers: Reports
- Reliance Jio and Airtel 5G prices may be affordable for now but expected to increase after wider rollout
- Omnichannel becomes omniscient as retailers gear up for revenge festive celebration
- Redmi Pad Review: A decent tablet for the masses
- Electronics Mart India IPO is subscribed 1.69 times on day 1
- Big B’s best movies are back on the big screens - Here are 11 you can watch
- Reliance Jio to begin beta trial of 5G in four cities on Dussehra with unlimited data