Upcoming IPOs: Mobikwik and Waaree Energies Make Headlines
In an exciting development for investors, two prominent companies, Mobikwik and Waaree Energies, have received approval from the Securities and Exchange Board of India (SEBI) to raise capital through Initial Public Offerings (IPOs). On September 19, SEBI issued observation letters for both companies, paving the way for their respective IPO launches within the next year.
Mobikwik: A Leader in Digital Finance
Mobikwik, a well-known fintech platform, filed its IPO paperwork on January 4, 2024, aiming to raise ₹700 crore. The upcoming public offering will solely consist of fresh equity shares, with no shares being sold through an Offer for Sale (OFS), which means the IPO’s proceeds will directly benefit the company.
Founded by Bipin Preet Singh and Upasana Taku, Mobikwik has attracted significant investments from top-tier firms including Bajaj Finance, Peak XV Partners, Abu Dhabi Investment Authority, and Sequoia Capital. The company may also pursue a pre-IPO placement to secure up to ₹140 crore before filing its red herring prospectus.
Funding Allocation for Mobikwik
Mobikwik has over 156 million registered users and serves more than 4.1 million merchants, facilitating both online and offline transactions. The company provides a diverse range of financial products, including digital credit, investment, and insurance options.
| Use of Funds | Amount (in ₹ crore) |
|---|---|
| Financial Services Business | 250 |
| Payment Services Business | 135 |
| Investment in Data, ML, and AI | 135 |
| Payment Device Business | 70.3 |
| General Corporate Purposes | Remaining Amount |
Waaree Energies: Expanding Solar Manufacturing
Waaree Energies, a leader in solar PV module production, submitted its IPO documentation to SEBI on December 28, 2023, looking to raise funds amounting to ₹3,000 crore. In addition to the fresh equity capital, existing shareholders will sell 3.2 million shares through OFS. Notably, the promoter, Waaree Sustainable Finance, will be selling 2.7 million shares, while non-promoters Chandurkar Investment and Sameer Surendra Shah will sell 500,000 shares each.
Funding Utilization for Waaree Energies
Since its inception in 2007, Waaree Energies has significantly expanded its operations, increasing its total installed solar power capacity from 2 GW in FY21 to 12 GW as of June 2023. The company boasts four manufacturing plants located in Gujarat and utilizes cutting-edge technologies such as multicrystalline and monocrystalline cells, alongside tunnel oxide passivated contact (TopCon) technology, to enhance energy efficiency.
| Use of Funds | Amount (in ₹ crore) |
|---|---|
| New Solar Manufacturing Facility in Odisha (6GW) | 2500 |
| General Corporate Purposes | Remaining Amount |
Conclusion
As Mobikwik and Waaree Energies prepare for their IPOs, they represent significant opportunities for investors looking to tap into the burgeoning digital finance and renewable energy sectors, respectively. Both companies are poised for growth, leveraging their innovative technologies and market positions to attract investor interest in the upcoming financial year.
