PayMate, an Indian Fintech company, re-filed its Initial Public Offering (IPO) with the Stock Exchange Board of India(SEBI) in January 2023. It received the final authorisation from RBI to operate as an online payment aggregator. According to the report of Mint, PayMate was asked to update the Draft Red Herring Prospectus (DRHP) with a final online payment aggregator authorisation. As a result, the company's IPO could not launch as expected.
With this news, investors are curious about the offering, the lot size of shares, PayMate India share price, and many more. In this write-up, we will discuss PayMate India Ltd upcoming IPO and the company's future outlook.
Detailed Analysis Of PayMate Upcoming IPO
PayMate India Limited is a leading B2B payment service provider with multiple payment categories like vendor payments, utility and statutory payments, etc. Recently, PayMate India Ltd got the final authorisation from the Reserve Bank of India (RBI) to become an online payment aggregator and received the green light from SEBI to launch an IPO. Every investor right now is curious to know PayMate India share price and other details of its IPO.
Estimated IPO Offer Price
PayMate India Ltd's IPO comprises the fresh issue of an offer for sale company issued for investors. The fresh issue disclosed in its IPO documents is Rs 11,250 million, out of which the company will use Rs 770 million to expand its business operations in new states.
Details Of PayMate India Ltd Upcoming IPO
Here are the key details of PayMate India Ltd upcoming IPO:
| Particulars | Details |
| Issue Size | Rs 1500 crore |
| Issue Type | Book built |
| Price Band | Not disclosed |
| Opening Date | Not disclosed |
| Closing Date | Not disclosed |
| Fresh Issue | Rs 1125 crore |
| Offer For Sale | Rs 375 crore |
During the PayMate India Ltd IPO analysis, it is vital to look at the company's financial summary in the last few fiscal years. Here is the financial performance of PayMate India Ltd:
| Particulars( cr.) | FY19 | FY20 | FY21 |
| Operational Revenue | 2,358.50 | 2,161.38 | 3,485 |
| EBITDA | 69.14 | 249.64 | 255.97 |
| EBITDA Margin | 2.93% | 11.55% | 7.35% |
| Profit After Tax(PAT) | 79.61 | 277.89 | 281.12 |
| Equity Per Share(EPS) | 1.58 | 5.41 | 5.41 |
| Net Profit | -5.55 | -7.96 | -26.43 |
| ROE | -163.49 | -79.57 | 209.11 |
The shareholding pattern of the PayMate will be public (66.70%) and non-promoters (33.30%). An effect of the offer PayMate India share price disclosed by the company is also seen on PayMate India Pre-IPO shares actively traded in the grey market.
Things to Know Before Investing In PayMate India Limited
If you are looking to invest in PayMate India Limited, there are a few things you need to keep in mind. Unlike PayMate India unlisted shares, which are less risky, investing in PayMate IPO shares involves more risk. Before deciding, let's see the company's strengths and risks.
Strengths
- PayMate is a full-stack payment and credit engine.
- It is an innovative platform that detects fraudulent transactions and is used by many customers.
- The company is partnered with stakeholders, including trusted financial institutions.
Risks
- PayMate can change the policy per the RBI guidelines, affecting its market performance.
- It depends on the stakeholders largely and allows a small portion of its stakes to retail investors.
- The future service charge needs to be fixed, which can affect its customer base.
Reasons To Invest In Paymate India Ltd IPO Shares
There are various reasons to invest in PayMate India Ltd IPO shares which will bring major benefits for retail and institutional investors. Here are the top reasons for investing in PayMate India IPO shares:
- It has VISA as the stakeholder with a 2.94% stake in PayMate India Ltd.
- PayMate is India's fastest-growing B2B payment company used by many customers and has been profitable for the last fast years.
- The company expanded its customer base to 49,618 customers and added 391 new enterprises and 49,227 SMEs in 2021.
It is profitable to invest in PayMate's upcoming IPO shares as it is expected to grow at a fast pace during its initial phase.
How Will The IPO Affect PayMate Unlisted Shares?
Talking about the PayMate India unlisted shares currently traded in the Pre-IPO market will majorly affect the upcoming IPO. Since PayMate is expanding its operations, even after its IPO, PayMate unlisted share price is expected to perform well depending on the demands.
However, the PayMate India unlisted share price keeps changing and depends on market fluctuation and the company's performance. It is too early to say any significant impact of PayMate's upcoming IPO on its company's unlisted shares.
Future Of PayMate India Ltd After IPO
After the launch of the IPO, some companies perform well while others face huge losses. A perfect example is Paytm, whose IPO brings losses to its investors. PayMate India plans to use the funds raised from the IPO to expand its operations and services. So, it is clear that investors can expect a growth of IPO shares with the company's progress.
However, you can mitigate the risk by choosing PayMate unlisted shares. Since the company has not announced the exact date of the upcoming IPO yet, it is beneficial to invest in Pre-IPO shares and brings diversification to the investment portfolio.
Stockify is the platform that allows investors to buy unlisted shares and provides complete details of a company's performance. We keep updating our website's PayMate India unlisted share price based on market fluctuations. Here you will get complete guidance on selecting top-performing unlisted shares. Explore the investing option by connecting with us.
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