Paymate India to re-file DRHP after getting approval for payment aggregator license

It received in-principle approval from the RBI for payment aggregator authorization in December.

Paymate India was asked by the Securities and Exchange Board of India (SEBI) to re-file the documents with some updates for the initial public offering (IPO). The move could delay the company’s initial share sale.

According to sources, the company was asked to update the DRHP with the final payment aggregator authorization and other material updates, news agency PTI reported.

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

The SAR is a part of the Standard Operating Protocol for obtaining the final approved PA authorization from the Reserve Bank of India (RBI).

“We are confident of prompt turnaround by RBI, and thereafter refilling the DRHP with relevant updates subject to final approval of RBI,” Paymate India said.

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

The proposed IPO includes fresh issue of equity shares 1,125 crore and an offer-for-sale (OFS). 375 crore by the promoters, investors and other shareholders.

The promoters of the company – Ajay Adishan and Viswanathan Subramanian and investors – as well as Lightbox Ventures I, Mayfield FVCI Limited, RSP India Fund LLC and IPO Wealth Holdings are to sell shares through the OFS.

In addition, some of the existing shareholders are offering to sell shares through this route.

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

According to an update on Sebi’s website on Monday, the regulator returned the DRHP of the company on January 17, 2023 with an advice to file it again after applicable updates/amendments.

Paymate is a multi-payment category platform that covers merchant payments, statutory payments and utility payments, giving its customers a fully integrated B2B payment stack.

The platform also allows consumers and their sellers, suppliers, buyers, dealers and distributors to make statutory payments of direct taxes and GST as well as make utility payments using commercial credit cards.

Visa has a partnership with Paymate. It is also a shareholder in Paymet, owning 2.94 per cent of the fully diluted paid-up equity share capital.

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