The buzz around the primary markets seems to be gaining momentum. Fintech major Razorpay has taken the first step towards a stock market debut. It has confdentially filed the draft IPO documents with the Securities and Exchange Board of India (SEBI).
PTI quoted sources and stated that the issue size is around Rs 5,000-6,000 crore, though the company has not disclosed any fundraising target.
Financialexpress.com could not verify the issue size independently.
Razorpay IPO on cards
PTI stated that the company said it has filed “the pre-filed draft red herring prospectus with SEBI and the stock exchanges… in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges”.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has grown from a payments company into a broader business financial services platform. Its offerings now span payment acceptance, payouts, banking services, payroll management and lending solutions.
The company has appointed JP Morgan, Citi, Axis Capital and Kotak Mahindra Capital as bankers to the issue.
Confidential route keeps details private
The confidential filing mechanism allows companies to submit draft offer documents to SEBI without immediately making sensitive business and financial information public.
The route has gained popularity among firms preparing for stock market listings, as it provides greater flexibility during the regulatory review process.
The final size of the issue, valuation and listing timeline will depend on regulatory clearances and market conditions.
Backed by marquee investors
Razorpay achieved unicorn status in 2020 and has expanded its presence across India’s digital payments and business finance ecosystem.
The company serves millions of businesses, including startups, small and medium enterprises and large corporates. Its platform enables merchants to manage collections, payroll, cash flow and access to credit through a single interface.
Its investor roster includes Peak XV Partners, GIC, Tiger Global, Ribbit Capital, Lone Pine Capital, Alkeon Capital and TCV.
The filing comes at a time when India’s fintech sector is preparing for a fresh wave of public market activity. Rival fintech company PhonePe has reportedly deferred its IPO plans amid geopolitical tensions in West Asia and volatile market conditions.
PhonePe was earlier reported to be targeting a fundraise of about $1.5 billion at a valuation of nearly $15 billion.
(With inputs from PTI)
