Mumbai-based PayMate India, a B2B payments and services provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) with a fresh issue of Rs 1,125 crore and Offer for sale (OFS) of Rs 375 crore.
Mumbai-based PayMate India, a B2B payments and services provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
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The IPO comprises a fresh issue of shares worth Rs 1,125 crore and an Offer for Sale (OFS) of Rs 375 crore.
The proceeds from its fresh issuance worth Rs 77 crore will be utilised for investment to expand its business into new geographies, Rs 228 crore for pursuing inorganic initiatives, Rs 688.70 crore for placing cash as collateral with its financial institution partners to improve its margins and general corporate purposes.
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The company, in consultation with the lead bankers to the issue may consider a private placement of equity shares aggregating up to Rs 225 crore. If such placement is completed, the fresh issue size will be reduced.
As on the date of filing DRHP, the promoter and promoter group held 66.70 percent in the company and the rest was held by public shareholders.
Those selling shares in the OFS include promoters--Ajay Adiseshan and Vishvanathan Subramanian--and investors -- Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC and IPO Wealth Holdings, besides, certain existing shareholders are too offering shares through this route. The offer also includes a reservation for subscriptions by eligible employees.
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.
Crompton Greaves Consumer Electricals Ltd, Kansai Nerolac Paints Ltd, SBI Cards and Payment Services Ltd, and Jay Bharat Maruti Ltd are among the 480 enterprises that have subscribed to the enterprise plan on its platform to receive payments from their buyers, dealers, and distributors.
ICICI Securities, HSBC Securities and Capital Markets (India) Private Limited, JM Financial and SBI Capital Markets are the book running lead managers to the issue