Sources and reports say Mobikwik plans to raise $255m in share sale while Paytm seeks pre-lisiting funding uplift of $268m
(AF) Indian digital payments company Mobikwik has beat its rival Paytm to the IPO punch, with an initial share sale filed with the market regulator Monday.
It follows a report in Asia Financial last week that the larger Paytm is also in the market to raise billions in a listing later this year.
Mobikwik, backed by Sequoia Capital and India’s Bajaj Finance, has filed for an initial public offering to raise as much as 19 billion rupees ($255m).
Mobikwik’s IPO includes the issue of new shares worth 15 billion rupees and an offer for the sale of shares worth up to 4 billion rupees, diluting the stakes of its two founders and current investors, which include American Express, Cisco and Treeline Asia.
Mobikwik has hired ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jefferies as book managers for the IPO.
Paytm, meanwhile, wants to raise $268 million in a funding round as it prepares for a listing, a source directly aware of the matter said on Monday. The Noida-based company will also seek to issue 83 billion rupees worth of new shares and its backers Alibaba and SoftBank will have the option to sell another 83 billion rupees in stock, said the source, who declined to be named as the discussions are not public.
Paytm’s parent, One97 Communications, will file a draft prospectus shortly after its extraordinary general meeting on Monday for a domestic IPO that seeks to raise $2.3 billion, sources previously told Reuters.
That would make Paytm’s IPO India’s third-biggest in dollar terms after state-run miner Coal India in 2010 and Reliance Power in 2008.
The company won shareholders’ approval at the EGM to raise capital and to sell up to 120 billion rupees in new stock, the source added.
Paytm did not immediately respond to a request for comment.
Paytm has hired JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank for the IPO, Reuters previously reported.
The pre-IPO funding round was first reported by Bloomberg.
Reporting by Reuters