PayMate India files DRHP with SEBI for IPO worth Rs1,500 crore

14 Jun 2022 , 01:12 PM

PayMate India has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds upto Rs1,500 crore through an initial public offering (IPO).

The initial public offering consists of fresh issue of Rs1,125 crore and an offer for sale of Rs375 crore.

PayMate has informed that up to 10% of the offer will be available for allocation to retail-individual bidders. It has earmarked 75% of the offer for qualified institutional buyers, and 15% has been reserved for non-institutional bidders.

PayMate’s offer for subscription also includes a reservation for subscription by eligible employees.

The company’s offer for sale comprises Rs138.02 crore by Promoter Selling Shareholders. It includes an offer for sale worth Rs134.73 crore by Ajay Adiseshan and Rs3.29 crore by Vishvanathan Subramanian.

While the Investor Selling Shareholders such as Lightbox Ventures will offer Rs127.38 crore for sale, Mayfield FVCI Ltd. will offer up to Rs15.66 crore, Rs2.74 crore by RSP India Fund. LLC, and up to Rs17.01 crore by IPO Wealth Holdings Pvt Ltd.

Other Selling Shareholders such as G. Adiseshan will sell off a stake worth Rs1.96 crore, Uma Vishvanathan to offer up to Rs11.45 crore, up to Rs15.37 crore by Dhruv Pratap Singh. Probir Kumar Roy will offer up to Rs26.56 crore, Alexander Kuruvilla will offer up to Rs13.27 crore, and up to Rs5.59 crore by Anand Rajaram.

As on the date of filing the prospectus with SEBI, the promoter and promoter group held a 66.70% stake in the company and the remaining stake by the public shareholders.

Paymate India further envisages a private placement of equity shares aggregating up to Rs225 crore. If such private placement is successful the company may reduce the fresh issue size.

The company will utilize the fresh issue proceeds worth Rs77 crore for its foray into new geographies. PayMate seeks utilization of Rs228 crore for pursuing inorganic initiatives, Rs688.70 crore for placing cash as collateral with its financial institution partners so that it could improvise margins, and for general corporate purposes.

PayMate is a multi-payment category platform that incorporates vendor payments, utility payments, and statutory payments and provides its customers fully integrated B2B payment stack.