MobiKwik may defer plans to go public amid weak investor sentiment
Fintech startup Mobikwik may defer its plans to go public by a few months amid concerns about investors’ interest and skepticism about its business model following the regulator’s digital lending paper, multiple people aware of the matter confirmed to CNBC-TV18.
Mobikwik, a smaller rival to firms like Paytm, had filed its papers for a Rs 1,900 crore initial public offering (IPO) in July. This included a fresh issue of Rs 1,500 crores and an offer for sale (OFS) for another Rs 400 crores. Market regulator SEBI had subsequently approved the IPO plans on October 7.
"The plan was first to hit the markets around Diwali, and then it (Mobikwik) also wanted to wait for the response to Paytm. Now it is unlikely to go ahead before January-February. It all depends on the markets now because the timing has to be right,” said a person involved directly in the matter on the condition of anonymity.
Paytm’s disappointing listing and continued underperformance since played a key role in the decision to defer the IPO plans. MobiKwik's unlisted stock was exchanging at around Rs 1,350 before the launch of Paytm’s IPO. Since then, the unlisted share price has fallen to about Rs 900, almost 33 percent lower, as per reports.
Paytm stock up 10% after 2 days of decline; touches high of Rs 1,525 during the day
Shares of newly-listed One97 Communications, the parent company of Paytm, was up 10 percent on Tuesday. The stock was trading at Rs 1,496 at the time of writing on NSE, in a sigh of relief for investors after a series of losses following a weak debut.
On BSE, the Paytm stock was trading at Rs 1,492. The stock has touched a high of Rs 1,525 during the day on both exchanges. The stock closed at Rs 1,494.70 on NSE and Rs 1,489 on BSE.
Shares of One97 Communications on Thursday made a weak market debut and tumbled over 27 percent from the issue price of Rs 2,150. The shares declined for the second day in a row on Monday after it tumbled 13 percent. The stock tanked 13.03 percent to close at Rs 1,360.30 on BSE. On NSE, it tumbled 12.89 percent to settle at Rs 1,359.60.
IPO-bound Pepperfry secures $10 million in debt: Report
Furniture marketplace Pepperfry has picked up another tranche of $10 million from eight investors in the form of compulsory convertible debentures (CCDs), Entrackr reported. This will be the second debt infusion in the company in 2021.
In February, Venture debt firm InnoVen Capital had invested Rs 35 crore in Pepperfry. According to the report, Pepperfry has approved the issuance of 74348 CCD (Series A class) at a face value of Rs 10,000 each to raise around Rs 74 crore or close to $10 million.
Norwest Venture Partners, Broad Street Investments and Erste WV Guttersloh are the largest investors in this round with Rs 23.28 crore, Rs 18 crore and Rs 15 crore respectively. Panthera Growth Fund, General Electric Pension Trust and Madhumala Ventures have also joined this tranche, the report added.
According to a Mint report, Pepperfry is planning to file for an initial public offering (IPO) in the first half of 2022 and is likely to raise a pre-public round in the range of $50 to $100 million by the end of this year.
(Edited by : Jomy Jos Pullokaran)
First Published: IST