SEBI asks fintech platform PayMate India to refile IPO

Market regulator Securities and Exchange Board of India (SEBI) has returned the draught prospectus of the Rs 1,500 crore archetypal nationalist offering (IPO) of Mumbai-based fintech level PayMate India. 

The institution filed the Draft Red Herring Prospectus (DRHP) with the regulatory assemblage successful May past year. The regulator has advised Paymate to refile it with definite updates. 

According to PTI, the institution was asked to update DRHP with the last outgo aggregator authorisation and different worldly updates, if any. The determination whitethorn hold the company's archetypal stock sale.

PayMate obtained in-principle support from RBI for outgo aggregator authorisation successful December 2022.

“Based connected the SEBI connection we person received and pursuing our receipt of in-principle support from RBI for the Payment Aggregator (PA) authorisation recently, we volition beryllium successful a presumption to taxable the mandatory SAR (System Audit report) by the archetypal oregon 2nd week of February,” the institution said successful a statement.

SAR is simply a portion of the modular operating protocol to get the last approved PA authorisation. 

“We are assured of a speedy turnaround by RBI; and thereafter refiling DRHP with applicable updates on with the RBI last approval,” Paymate India said.

The projected IPO comprises a caller contented of Rs 1,125 crore and an offer-for-sale (OFS) of Rs 375 crore from its existing shareholders and promoters.  

In the OFS, promoters Ajay Adiseshan and Vishvanathan Subramanian volition merchantability up to Rs 134.73 crore and Rs 3.29 crore, respectively. Institutional capitalist Lightbox Ventures volition merchantability up to Rs 127.38 crore, Mayfield FVCI Ltd volition merchantability up to Rs 15.66 crore, and RSP India Fund volition merchantability up to Rs 2.74 crore. 

The connection besides includes a preservation for subscription by eligible employees. As of the day of the DRHP filing successful May 2022, the promoter and promoter radical held 66.7% of the institution and the remainder was held by nationalist shareholders.

According to an update connected the SEBI’s website, the regulator returned the company's DRHP connected January 17, 2023, with proposal to re-file the papers station applicable updates/revisions.

PayMate is simply a B2B outgo and services supplier that digitises, automates, and streamlines business-to-business payments successful proviso chains. Its level provides upgradation from accepted paper-based workflows to software-driven workloads with integer outgo streams similar integer invoicing and respective complementary features. The institution has a beingness successful India and the UAE, and is aiming to besides grow crossed Central Europe, Middle East and Africa (CEMEA).

Earlier this month, SEBI besides returned the draught IPO papers of home-grown mobile shaper Lava International and Oravel Stays Ltd, the genitor institution of hospitality unicorn OYO, and asked them to refile the documents with definite updates.