One MobiKwik Systems Ltd has approved the transfer of its Lending Services Provider (LSP) business to MobiKwik Distribution Services Private Limited (MDSPL), a wholly owned subsidiary of the company.
The proposed transfer will be carried out through a slump sale arrangement under a Business Transfer Agreement (BTA).
The company said the transaction is to be completed by the end of the second quarter of FY27 after fulfilment of regulatory and customary conditions. The approval was given at the board meeting held on May 22, 2026, subject to shareholders’ consent.
According to the company’s disclosure, the LSP business reported revenue of ₹2,613.75 million in FY26. The segment contributed 22.70% of the company’s standalone revenue during the financial year.
The net worth of the LSP business stood at ₹952.21 million as of March 31, 2026, accounting for 16.94% of the company’s standalone net worth. The company said the transfer consideration will be settled through non-convertible debentures issued by MDSPL to the parent entity.
The value of the transaction will be based on the book value of the assets and liabilities of the LSP business on the appointed date determined by the board.
The filing also stated that the deal qualifies as a related-party transaction as MDSPL is a wholly owned subsidiary, though it will be undertaken on an arm’s length basis.
The company said the restructuring is linked to the RBI’s registration process for NBFC operations. Mobikwik Financial Services Private Limited, another wholly owned subsidiary, has applied for a Certificate of Registration to operate as a Non-Banking Financial Company.
As part of the process, the company is required to transfer its LSP business to MDSPL. The subsidiary is engaged in distribution of financial services, including facilitation of loans and other credit products.
Read More: Prestige Estates Q4 FY26 Results Out: Net Profit Rises Nearly 10-Fold To ₹250 Crore in FY26!
As of May 22, 2026, 3:30 pm, One MobiKwik Systems Ltd share price closed at ₹193.95, up 0.48% from the previous closing price.
The company has also approved changes related to payment aggregator operations and IPO proceeds utilisation. Further disclosures will be made after shareholder approval processes are completed.
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Published on: May 23, 2026, 11:52 AM IST
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