Paramotor Digital Technology Ltd, a financial technology company engaged in digital gifting, consumer spend management and rewards and loyalty platforms, on Wednesday filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the market regulator, Securities and Exchange Board of India (SEBI), for its proposed Rs 1,000-crore initial public offering (IPO).
Paramotor Digital IPO details
According to the UDRHP, 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. The two promoters will offload shares worth up to Rs 151 crore each.
The equity shares have a face value of Rs 10 apiece.
The company may also consider a pre-IPO placement of up to Rs 139.60 crore. If undertaken, the placement amount will be adjusted against the fresh issue size, subject to applicable regulations.
Paramotor Digital Technology IPO Proceeds
Paramotor Digital Technology will use the proceeds from the fresh issue primarily for customer acquisition, retention, and brand and business promotion initiatives, for which the company has earmarked Rs 355 crore.
The company also plans to allocate Rs 94 crore towards technology development, cloud infrastructure services, and IT assets, and Rs 38 crore to office infrastructure. The remaining proceeds 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.
Paramotor Digital’s proposed listing plans comes at a time when the company is seeking to expand its footprint across prepaid payment instruments (PPIs), digital gifting, rewards and loyalty solutions, and enterprise technology services.
The company’s financial performance has expanded alongside the launch of new business verticals.
The company’s revenue from operations stood at Rs 3.31 crore in FY24 and Rs 11.21 crore in FY25 on a standalone basis, before increasing to Rs 60.31 crore in FY26 on a consolidated basis.
Its profit after tax (PAT) rose from Rs 4.94 crore in FY24 to Rs 24.51 crore in FY25 and Rs 59.14 crore in FY26, based on the respective standalone and consolidated financial statements.
For the three months ended June 30, 2026, the company reported consolidated revenue from operations of Rs 252.77 crore and PAT of Rs 23.81 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 32.62 crore, with an EBITDA margin of 12.90 per cent.
The company reported 1.58 million transacting users in FY26, compared with 43,269 in FY25 and 18,248 in FY24. Its user retention rate stood at 99 per cent in FY26, against 87.98 per cent in FY25 and 98.48 per cent in FY24.
Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue, while MUFG Intime India is the registrar.
About Paramotor Digital Technology
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.
It also distributes non-reloadable branded gift cards issued by merchants. Its customers include PPI issuers, gift card aggregators, corporates running rewards and loyalty programmes, and clients of its DevStack business.