PayMate India files for IPO to raise ₹1,500 crore
Premium- As on date of the DRHP filing by PayMate India, the promoter and promoter group held 66.70% in the company and rest was held by public shareholders.
PayMate India, a payments and services provider, has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO) with a fresh issue of ₹1125 crore and offer-for-sale of ₹375 crore.
Up to 10% of the PayMate India offer will available for allocation to retail individual bidders while not less than 75% of the offer will be earmarked for qualified institutional buyers and 15% for non-institutional bidders. The offer also includes a reservation for subscription by eligible employees.
The offer for sale comprises up to ₹134.73 crore by Ajay Adiseshan and up to ₹3.29 crore by Vishvanathan Subramanian (“Promoter Selling Shareholders"), up to ₹127.38 crore by Lightbox Ventures I, up to ₹15.66 crore by Mayfield FVCI, Ltd., up to ₹2.74 crore by RSP India Fund. LLC, up to ₹17.01 crore by IPO Wealth Holdings Pvt Ltd (“Investor Selling Shareholders"), up to ₹1.96 crore by G. Adiseshan, up to ₹11.45 crore by Uma Vishvanathan, up to ₹15.37 crore by Dhruv Pratap Singh, up to ₹26.56 crore by Probir Kumar Roy, up to ₹13.27 crore by Alexander Kuruvilla and up to ₹5.59 crore by Anand Rajaram (“Other Selling Shareholders").
PayMate India said it is in consultation with the lead bankers to the issue may consider a private placement of equity shares aggregating up to ₹225 crore. If such placement is completed, the fresh issue size could be be reduced.
As on date of the DRHP filing the promoter and promoter group held 66.70% in the company and rest was held by public shareholders.
The proceeds from its fresh issuance worth Rs. 77 crore will be utilised for investment into new geographies, ₹228 crore for pursuing inorganic initiatives, ₹688.70 crore for placing cash as collateral with its financial institution partners to improve its margins and general corporate purposes.
PayMate is a multi-payment category platform that incorporates vendor payments, statutory payments, and utility payments, giving its customers a “fully-integrated" B2B payment stack. The platform also allows consumers and their vendors, suppliers, buyers, dealers, and distributors to use commercial credit cards to make statutory payments of direct taxes and GST, as well as utility payments.
Visa has a partnership with PayMate. Visa cards accounted for more than 90% of commercial credit cards handled through the systems as of December 31, 2021. Visa is also a shareholder in PayMate, owning 2.94 percent of the fully diluted paid-up Equity Share capital.
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PayMate’s revenue from operations increased 61.19 percent from ₹216.14 crore in Fiscal 2020 to ₹348.40 crore in Fiscal 2021, primarily due to an increase in the local transaction fees and international transaction fees. Revenue for the nine-month period ended December 2021 stood at ₹843.44 crore.
ICICI Securities Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and SBI Capital Markets Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.