The Gurugram-based fintech firm MobiKwik has lodged its Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) to raise Rs. 572 crore through a fresh issuance of equity shares. The company has downsized its IPO offering three times.

The corporation intends to employ the initial public offering funds for a variety of strategic objectives. The growth of its financial services business will be funded by Rs. 150 crores, while its payments business will be funded by Rs. 135 crore million.

The company announced in its IPO papers that it will allocate Rs. 107 crore to research and development in data science, artificial intelligence-machine learning, and product technology.

A price band of Rs. 265-Rs. 279 will be used for the Mobikwik IPO, which will open for subscription on December 11. Book-running managers SBI Capital Markets and DAM Capital Advisors are leading the charge.

Investors can bid for a minimum of one lot size, which includes 53 shares valued at Rs. 14,787, according to the Red Herring Prospectus. The firm has arranged the distribution of its initial public offering (IPO) as follows: 75% of the issue size has been allocated to qualified institutional buyers, 15% to non-institutional investors, and the remaining 10% to retail investors.

According to the IPO price band, the company is currently valued at $197 million (Rs. 1,660 crore) After the IPO, with an infusion of Rs. 572 crore from the fresh proceeds, its valuation will rise to $264 million. A 71.6% drop from its peak valuation of $924 million in 2021 is reflected in this.