Paramotor Digital Technology Files Updated Draft Papers for Rs 1,000-Cr IPO

New Delhi: Financial technology company Paramotor Digital Technology Ltd on Wednesday filed its updated draft papers with markets regulator Sebi for its Rs 1,000-crore initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 698 crore and an offer for sale (OFS) of shares aggregating up to Rs 302 crore by promoters Sonia Pankaj Asher and Rahul Anand, according to the updated draft red herring prospectus (UDRHP).

The two promoters will offload shares worth up to Rs 151 crore each.

The company may also consider a pre-IPO placement of up to Rs 139.60 crore. If undertaken, the placement amount will be deducted from the fresh issue size.

The company will use the proceeds from the fresh issue primarily for customer acquisition, retention, and brand and business promotion initiatives, for which it has earmarked Rs 355 crore.

The company also plans to allocate Rs 94 crore to technology development, cloud infrastructure services, and IT assets, and Rs 38 crore to office infrastructure. The remaining amount will be utilised for general corporate purposes.

This followed the fintech and enterprise technology firm filing draft papers with Sebi for an IPO using the confidential route, which allowed it to keep details related to the issue size and other key information confidential until a later stage. In August, Sebi approved its maiden public offering.

Founded in 2016, Paramotor Digital operates across prepaid payment instruments (PPIs), digital gifting, rewards and loyalty solutions, and enterprise technology services.

Its offerings include SpendPro, a consumer spend management platform; yayyy.shop, a digital marketplace for gift cards and reward points; RewardOn, a corporate rewards and incentives platform; and DevStack, which provides customised enterprise software development services.

The company acts as a programme manager, business correspondent and distribution agent for prepaid payment instruments issued by banks and other Reserve Bank of India-licensed issuers.

Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue, while MUFG Intime India is the registrar.

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