India’s market regulator, SEBI, has given the green light to Mobikwik and Waaree Energies to raise funds through Initial Public Offerings (IPOs). Both companies received the approval after SEBI issued observation letters on September 19, allowing them to launch their IPOs within the next year.
Mobikwik, a leading fintech company, is set to raise ₹700 crore through its IPO, while Waaree Energies, a solar energy firm, will raise ₹3000 crore. Let’s break down what each company plans to do with the funds they raise and how it will impact their growth and operations.
Mobikwik Plans Big: Where Will the ₹700 Crore Go?
Mobikwik, one of India’s most prominent digital payment platforms, aims to utilize its IPO funds for multiple growth areas. Here’s a breakdown of how Mobikwik plans to use the money raised from its IPO:
- Expansion of Financial Services Business:
Mobikwik plans to invest ₹250 crore in expanding its financial services segment. This will primarily focus on enhancing its digital credit offerings, investments, and insurance products. The goal is to strengthen its portfolio in financial services and cater to the growing demand for these products in India. - Boost to Payment Services:
Another ₹135 crore will be allocated to Mobikwik’s core payment services business. The fintech company currently serves over 156 million users and 4.1 million merchants, allowing them to make and accept payments both online and offline. The investment will help Mobikwik scale up its payment infrastructure and bring in new merchants and users to the platform. - Investment in Data, Machine Learning, and AI:
With a focus on innovation, ₹135 crore from the IPO will be spent on improving Mobikwik’s data, machine learning (ML), and artificial intelligence (AI) capabilities. These funds will help the company deliver better customer experiences, increase efficiency, and drive smarter decision-making through tech-based solutions. - Payment Devices:
A further ₹70.3 crore will go towards Mobikwik’s payment device business. This is an area where the company sees significant growth potential, allowing it to offer merchants and consumers more seamless, device-based payment options. - General Corporate Purposes:
The remainder of the funds will be set aside for general corporate purposes, which may include operational costs, expanding team size, and other business activities that contribute to overall growth.
Waaree Energies’ ₹3000 Crore IPO: Powering Solar Energy Growth
Waaree Energies, one of India’s leading solar PV module manufacturers, has ambitious plans for the funds raised through its IPO. Here’s how they will allocate the money:
- New Manufacturing Facility in Odisha:
Waaree Energies plans to invest ₹2500 crore of the IPO proceeds in setting up a 6 GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha. This facility will significantly enhance their production capacity, allowing them to cater to the growing demand for solar energy solutions both domestically and internationally. - Boosting Existing Operations:
With the remaining funds, Waaree will focus on strengthening its current operations, including enhancing production efficiency and upgrading technology at its existing manufacturing facilities. The solar energy sector in India is booming, and these upgrades will position Waaree to better compete in the market. - Offer for Sale (OFS):
Out of the total IPO, 32 lakh shares will be sold by existing shareholders through an Offer for Sale (OFS). This includes 27 lakh shares from Waaree’s promoter, Waaree Sustainable Finance, and 5 lakh shares from non-promoters Chandurkar Investment and Sameer Surendra Shah.
Waaree Energies: A Leader in Solar Energy Production
Founded in 2007, Waaree Energies has grown to become one of India’s top solar module manufacturers, with four major production facilities in Gujarat. Over the last few years, the company has expanded its production capacity from 2 GW in FY21 to 12 GW by June 2023. Its solar PV modules are made using advanced technologies like multicrystalline and monocrystalline cells, and the emerging TopCon technology, which increases efficiency by reducing energy losses.
Waaree’s listed competitor in the market is Websol Energy Systems, but with this significant investment in manufacturing and technology, the company is well-positioned to further establish itself as a leader in India’s renewable energy sector.
With both companies set to launch their IPOs, it will be interesting to see how these funds will fuel their growth and further innovation in the fintech and renewable energy sectors in India.
