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Mumbai: Swaraj Singh Dhanjal

swaraj.d@livemint.com

mumbai

Payments firm One MobiKwik Systems Ltd has received markets regulator Securities and Exchange Board of India’s (Sebi’s) approval to go ahead with its 1,900 crore initial public offering (IPO), a person aware of the development said.

The company could look to launch its IPO as early as the end of this month or the beginning of next month, the person mentioned above said.

A MobiKwik spokesperson could not be immediately reached for comments.

MobiKwik had filed its draft IPO papers with Sebi in July. The IPO comprises a sale of new shares worth 1,500 crore and an offer for sale of stock worth 400 crore by its promoters and shareholders. Tech startups such as MobiKwik are rushing to take advantage of the positive sentiment created by a record-breaking stocks rally, increasing public interest in technology shares and accelerated adoption of online services in the past year because of the pandemic.

MobiKwik’s shareholders participating in the offer for sale include American Express Travel Related Services, which plans to sell shares worth 9.98 crore, Bajaj Finance ( 68.98 crore), Sequoia Capital ( 95 crore), Cisco Systems ( 11.48 crore), Tree Line Asia Master Fund Pte ( 24.41 crore) and MobiKwik co-founders Bipin Preet Singh ( 113.33 crore) and Upasana Taku ( 78.82 crore).

Singh and Taku hold 20.21% and 14.31% in the firm, respectively. Bajaj Finance owns 13.86%, while Sequoia Capital India Investment has 13.46%.

MobiKwik plans to use the net proceeds to fund organic growth initiatives and for applying for additional licence approvals and authorizations, subject to meeting capitalization and net-worth norms.

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