MUMBAI: India1 Payments Ltd has filed draft papers with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth Rs150 crore and an offer for sale of up to 10.31 million shares by existing shareholders and promoters.

The OFS will sale of up to 100,00 shares by The Banktech Group Pty, up to 2.51 million shares by BTI Payments Singapore Pte and upto 4.99 million shares by India Advantage Fund S3 I, upto 2.49 million shares by India Advantage Fund S4 I and upto 2.16 lakh shares by Dynamic India Fund S4 US I.

Currently, Banktech Group holds 37.44% stake in the firm, while BTI Payments Singapore owns 13.61% share. The firm said BTI Payments Singapore also holds 2.47 million compulsory convertible preference shares and will convert 6.97 million equity shares prior to filling the red herring prospectus with the registrar of the company.

The company may consider a pre-IPO placement to raise up to ₹30 crore, the DRHP said.

JM Financial, Edelweiss Financial Services and IIFL Securities Ltd are the lead managers to the issue.

Proceeds from the issue worth Rs63.25 crore will be used to pay debts. As of June 2021, its total outstanding borrowings were at Rs935.37 crore.

The firm will use Rs49.27 crore to fund capital expenditure for setting up of ATMs. As of June 2021, it operated a network of 8,520 ATMs across 14 states and union territories in India. It plans to set up 1,000 ATMs in semi urban and rural regions. It processed an average of 24 million transactions per month on its ATM network.

The company is the largest independent non-bank ATM operator in India. For fiscal 2021 and the June quarter, gross transaction value (GTV) of cash transactions from its ATMs were at ₹439.75 billion and ₹136.39 billion respectively.

The firm generates revenue on a per transaction basis from an interchange fee paid by its customers' banks for processing the ATM transactions rather than the customer itself.

For fiscal 2021, its revenue from operations was at Rs317.60 crore against Rs256.06 crore a year ago. Net profit for the period was at Rs3.34 crore versus a loss of Rs6.01 crore last year.