Paramotor Digital and Paras Healthcare Announce Major IPO Developments

Financial technology firm Paramotor Digital Technology Limited has officially submitted its Updated Draft Red Herring Prospectus-I (UDRHP-I) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise up to ₹1,000 crore.

Issue Structure & Pre-IPO Placement
The proposed public offering consists of a fresh issue of equity shares worth up to ₹698 crore and an Offer for Sale (OFS) amounting to up to ₹302 crore. Each equity share carries a face value of ₹10. The OFS includes shares valued at up to ₹151 crore each from promoter selling shareholders Sonia Pankaj Asher and Rahul Anand. Additionally, the company may explore a pre-IPO placement of up to ₹139.60 crore; if executed, this amount will proportionately reduce the fresh issue size.

Use of Proceeds
The net proceeds from the fresh allocation are targeted towards:

Customer Acquisition & Brand Promotion: ₹355 crore dedicated to customer retention, brand building, and business promotion.

Technology & Infrastructure: ₹94 crore allocated for tech development initiatives, cloud infrastructure services, and IT assets.

Office Infrastructure: ₹38 crore designated for office infrastructure investments.

General Corporate Purposes: The remainder directed toward overarching corporate operations.

Business Model & Offerings:
Established in 2016 and led by Executive Chairperson Sonia Asher and Managing Director Rahul Anand, Paramotor Digital operates extensively across prepaid payment instruments (PPIs), digital gifting, rewards/loyalty solutions, and enterprise tech services. Its primary product lines include:

SpendPro: A consumer spend management platform tailored for prepaid card users.

yayyy.shop: A digital marketplace dedicated to gift cards and reward points.

RewardOn: An end-to-end digital rewards and incentive platform designed for corporations.

DevStack: Customised enterprise software and technical platform development services.

The company acts as a program manager, business correspondent, and distribution agent for RBI-licensed issuers and banks, while also distributing merchant-issued brand gift cards.

Financial Performance & Growth Metrics
Paramotor Digital showcased substantial financial expansion:

Revenue: Consolidated revenue from operations scaled from ₹33.08 crore in FY24 to ₹112.08 crore on a standalone basis in FY25, before jumping to ₹603.15 crore on a consolidated basis in FY26.

Profitability: Profit After Tax (PAT) climbed from ₹4.94 crore (FY24) to ₹24.51 crore (FY25) and reached ₹59.14 crore (FY26).

Q1 FY27 Performance: For the quarter ended June 30, 2026, the company posted a consolidated revenue of ₹252.77 crore, a PAT of ₹23.81 crore, and an EBITDA of ₹32.62 crore (representing an EBITDA margin of 12.90%).

User Metrics: The platform recorded 1.58 million transacting users in FY26 with a robust user retention rate of 99%.

Segment Revenue Contribution:
The introduction of new business verticals reshaped the company’s revenue distribution in FY26:

Rewards and Loyalty: Contributed ₹414.23 crore (68.68% of contract revenue).

PPI Program Management and Distribution: Contributed ₹154.16 crore (25.56%).

DevStack: Contributed ₹34.76 crore (5.76%).
(Note: Revenue recognition varies, with Rewards & Loyalty and DevStack accounted for on a gross basis, and PPI program fees recognized net.)

Industry Outlook & Book Running Lead Managers:
According to the Frost & Sullivan Report, India’s prepaid transactions are anticipated to hit 2 billion in CY2025 (valued at ₹70,090 crore) and climb to 4.5 billion transactions (valued at ₹1,02,890 crore) by CY2030. Meanwhile, the digital gift card, rewards/loyalty, and fintech software development markets are all projected to experience strong double-digit CAGRs through 2030.

Motilal Oswal Investment Advisors Limited and Equirus Capital Limited serve as the Book Running Lead Managers (BRLMs), with MUFG Intime India Private Limited acting as the registrar.

Paras Healthcare Limited IPO Opens on October 21, 2026
Paras Healthcare Limited has announced that its initial public offering will open for bidding on Wednesday, October 21, 2026, and close on Friday, October 23, 2026. The anchor investor bidding date is scheduled for Monday, October 19, 2026.

Pricing and Lot Size:
Price Band: Fixed at ₹660 to ₹693 per Equity Share (face value of ₹1 per share).

Minimum Bid Lot: 21 Equity Shares, and in multiples of 21 thereafter.

Total Offer Size: Up to ₹1,450 crore, comprising a fresh issue of up to ₹500 crore and an Offer for Sale of up to ₹950 crore.

Listing and Objective of the Issue
The equity shares are proposed to be listed on both BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Net proceeds will be utilized for:

Prepayment or scheduled repayment of specific outstanding company borrowings.

Investment in its wholly-owned subsidiary, Plus Medicare Hospitals Private Limited (PMHPL), for debt servicing.

General corporate purposes.

Allocation and Bidding Mechanism:
The offer is being conducted via the Book Building Process under SEBI regulations:

QIB Portion: At least 75% of the offer is reserved for Qualified Institutional Buyers, with up to 60% of this portion allocable to Anchor Investors (featuring specific reservations for domestic mutual funds, life insurance companies, and pension funds).

NIB Portion: Not more than 15% is allocated to Non-Institutional Bidders, split between higher- and lower-ticket sub-categories.

Retail Portion: Not more than 10% is available for Retail Individual Bidders (RIBs).

All bidders except anchor investors are required to use the Application Supported by Blocked Amount (ASBA) process, including UPI mechanisms where applicable. JM Financial Limited, BofA Securities India Limited, and Nuvama Wealth Management Limited are the book-running lead managers for the issue.