Mumbai Business-to-business payments and services provider PayMate India has filed its draft prospectus with the capital markets regulator, Securities and Exchange Board of India. The company said that through initial public offering (IPO) Rs 1,500 crore.
IPO includes a fresh issue of total shares 1,125 crore and an offer for sale (OFS) 375 crores.
Visa and Lightbox venture-backed startups may also consider private placement of equity shares up to a maximum of Rs. 225 crores, after consulting its leading bankers. If the placement is completed, the size of the new issue will be reduced.
Its promoters and investors, including Lightbox, US venture capital firm Mayfield, IPO Wealth Holdings and RSP India Fund, will sell their stake in the OFS.
The company will invest from the proceeds of the IPO 77 crore more to expand its footprint in new markets 228 crore for inorganic development initiatives. it will use 689 in cash as collateral for improving margins for its financial institution partners.
Lightbox with 27.31% stake in PayMate is the largest stakeholder on a fully diluted basis.
As part of OFS, Lightbox . will sell shares up to 127.38 cr, Mayfield FVCI Ltd. will come out 15.66 crore owned, up to RSP India Fund 2.74 crore and IPO wealth will be sold 17.01 crore shares in PayMate.
Ajay Adishan, founder and shareholder of the largest promoter group, will sell shares worth Rs. 134.73 crore while Viswanathan Subramaniam, Chief Financial Officer, will disinvest the shares of 3.29 crores. Other promoter group shareholders, including Uma Viswanathan, G. Adishan, Dhruv Pratap Singh, Probir Kumar Roy, Alexander Kuruvilla and Anand Rajaram will also sell their stake.
PayMate will reserve a portion of the IPO for eligible employees and allocate at least 75% to qualified institutional buyers, 15% to non-institutional bidders and 10% to retail investors.
ICICI Securities, HSBC Securities and Capital Markets (India) Pvt. Ltd., JM Financial and SBI Capital Markets are the merchant bankers to the public issue.
Other investors in PayMate include Times Group’s parent BCCL, American venture capital funds Kleiner Perkins, formerly Kleiner Perkins Caufield & Byers and Sherpalo Ventures.
Founded in 2006 by Adiseshan, PayMate is a rapidly growing consumer goods, paint, cement, auto ancillary, financial services, travel, airline, media, manufacturing, and logistics company. It is India’s largest B2B platform for online, card-based payment-processing. In December, it processed transactions of 7,773.1 crores. Its operating revenue grew 61% FY20 to . 216.1 crore in 348.4 crore in FY21.