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SEBI Asks PayMate India To Refile IPO Papers

PayMate India had filed the draft red herring prospectus for a Rs 1,500-crore IPO with the SEBI in May 2022.

<div class="paragraphs"><p>The SEBI building. (Source: Sajeet Manghat/BQ Prime)&nbsp;</p></div>
The SEBI building. (Source: Sajeet Manghat/BQ Prime) 

SEBI has asked B2B payments and services provider PayMate India to refile the documents for the initial public offering with certain updates.

PayMate India had filed the draft red herring prospectus for a Rs 1,500-crore IPO with the Securities and Exchange Board of India in May 2022.

The proposed initial public offering comprises fresh issue of equity shares worth Rs 1,125 crore and an offer-for-sale of Rs 375 crore by promoters, investors and other shareholders, according to the draft papers.

The company's promoters—Ajay Adiseshan and Vishvanathan Subramanian and investors—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, promoter and promoter group hold 66.70% 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 Jan. 17, 2023 with an advise to refile it post applicable updates/revisions.

However, specific details were not disclosed.

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% of the fully diluted paid-up equity share capital.

ICICI Securities, HSBC Securities and Capital Markets (India) Pvt. Ltd., JM Financial and SBI Capital Markets are the book running lead managers to the issue.

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.