New IPO: PayMate India to refile DRHP after receiving final nod from RBI for payment aggregator licence

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(PTI) Fintech player PayMate India on Tuesday said it will refile the draft IPO papers with markets regulator Sebi after receiving final authorisation from the RBI to operate as an online payment aggregator (PA).

It obtained in-principle approval from RBI for the payment aggregator authorisation in December.

PayMate India was asked by the Securities and Exchange Board of India (Sebi) to refile the documents for the Initial Public Offering (IPO) with certain updates. The move may delay the company’s initial share sale.

According to sources, the company was asked to update DRHP with final payment aggregator authorisation and other material updates if any.

“Following our receipt of in-principle approval from RBI for the Payment Aggregator (PA) authorisation recently. We will be in a position to submit the mandatory SAR (System Audit Report) by the first or second week of February,” the company said in a statement.

SAR is a part of the standard operating protocol to get the final approved PA authorisation from the Reserve Bank of India (RBI).

“We are confident of a quick turnaround by RBI, and thereafter refiling DRHP with relevant updates along with the RBI final approval,” PayMate India said.

PayMate India had filed the Draft Red Herring Prospectus (DRHP) for a 1,500 crore IPO with the Sebi in May 2022.

The proposed IPO comprises a fresh issue of equity shares worth 1,125 crore and an Offer-For-Sale (OFS) of 375 crore by promoters, investors and other shareholders.

The company’s promoters — Ajay Adiseshan and Vishvanathan Subramanian and investors — as well as Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC and IPO Wealth Holdings are to sell shares through the OFS.

Besides, certain existing shareholders are offering to offload shares through this route.

Currently, the promoter and promoter group hold 66.70 per cent stake in the company and the rest is with public shareholders.

According to an update on Sebi’s website on Monday, the regulator returned the company’s DRHP on January 17, 2023, with advice to refile it post applicable updates/revisions.

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. It is also a shareholder in PayMate, owning 2.94 per cent of the fully diluted paid-up equity share capital.

Earlier this month, Sebi returned the draft IPO papers of home-grown mobile maker Lava International and Oravel Stays Ltd, the parent company of travel-tech firm OYO, and asked them to refile the documents with certain updates.

 

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An IPO is the process by which a private company can go public by offering its stock to the general public for the first time.

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