IPO By This Indian Startup Will Create Crorepati Employees! Rs 300 Crore Bonanza For 450 Employees
The digital payments firm, MobiKwik on Tuesday said that it’s initial public offering (IPO) will create seven crorepati employees with a net worth of at least Rs 10 crore ($1.3 million) each.
Apart from them, 128 employees will become millionaires in rupee terms.
MobiKwik IPO Rewarding Employees
On Tuesday, the fintech major MobiKwik has filed its draft red herring prospectus (DRHP).
It seems that following the successful listing of Zomato, several technology-driven firms filed draft papers with the Securities and Exchange Board of India (Sebi) to float their IPOs.
This list includes names like Paytm, Policybazzar, Mobikwik and Nykaa.
As part of its ESOP 2014 Scheme, MobiKwik has reserved 4.5 million equity shares for creating a pool of ESOPs for the benefit of the eligible employees.
Basically, the number of equity shares that would arise from the full exercise of options granted implies 7 percent of the fully diluted outstanding shares, said Upasana Taku, MobiKwik Chairperson, co-founder and COO.
Further, she added, “This 7 percent compares to less than 2 percent holding for most other internet companies that are coming up for listing… Over the last decade, MobiKwik has grown on the strength of its employees to become a leading fintech player in India. As we cement our presence and leadership further, we wanted to acknowledge and reward our employees for their efforts,”.
MobiKwik Recent Gains
MobiKwik is basically a Gurgaon-based company that is operating with 470 employees.
So far, it has over 108 million users and 3.4 million merchants on the platform as of June 2021.
During July, it has filed its DRHP with Sebi and plans to offer shares aggregating to Rs 1,900 crores in its IPO.
Out of that, Rs 1,500 crore is a fresh issue while the remaining Rs 400 crore is an offer for sale by existing shareholders.
The Digital payments firm offers solutions like mobile wallet and Buy Now Pay Later (BNPL).
It had raised a series G round of USD 20 million from Abu Dhabi Investment Authority (ADIA) at a per-share value of Rs 895.80 per share.
This issue will result in a 600 percent gain on average for the employees on their ESOPs, according to Taku.
She said, “This six-fold increase in the ESOP value has created generational wealth for the employees. It is the result of both the trust shown by employees in the company’s vision and the partnership-like approach taken by the company in sharing the rewards of value generation over time with the employees,”.