Paramotor Digital Technology IPO: Date, ₹1,000 Crore Issue and UDRHP Details

Paramotor Digital Technology IPO overview

Data as of 9 November 2026, 01:00 IST. Confirmed = SEBI filings. Reported = media or broker summaries of the UDRHP. Calculated = our arithmetic.

The Paramotor Digital Technology IPO has no date yet, but it is close to the final stage. The Mumbai fintech filed confidentially in May 2026, received SEBI’s approval in August and made its updated draft (UDRHP-I) public on 14 October 2026 (Confirmed). The IPO is ₹1,000 crore: ₹698 crore of new shares and a ₹302 crore offer for sale. Under the confidential route the updated draft is open for public comments for 21 days before the company can file a second update and then a red herring prospectus with the price band.

Paramotor Digital Technology IPO details

What Paramotor Digital does

Founded in 2016, Paramotor runs four lines of business (Reported):

• Prepaid cards (SpendPro): it acts as programme manager and distributor for prepaid cards issued by banks and RBI-licensed issuers. In August 2026 it signed a co-branded prepaid card tie-up with NSDL Payments Bank (Reported, PTI).
• Digital gifting (yayyy.shop): a consumer marketplace for brand gift cards and prepaid cards.
• Rewards and loyalty (RewardOn and reward points): launched in August 2025, it lets companies run employee, customer and channel reward programmes, and lets consumers buy and redeem reward points.
• Software services (DevStack): custom fintech development, card-management and KYC integrations, and white-label versions of its platforms.

Transacting users rose to about 1.58 million in FY26 from 43,269 in FY25, according to the company (Reported). The nearest listed comparison is Zaggle Prepaid Ocean Services, which works in corporate prepaid cards and spend management.

Paramotor Digital financials, and how revenue is counted

A fivefold jump in revenue looks dramatic, but much of it comes from a change in what the company sells and how it books it. Earlier revenue was mostly programme fees, recorded on a net basis. The rewards business started in FY26 and accounted for about 69% of FY26 revenue; because Paramotor acts as principal when it sells reward points and vouchers, it books the full redemption value as revenue and records about ₹394 crore of voucher costs separately (Reported, from UDRHP summaries). So revenue and profit tell different stories: FY26 net profit of ₹59 crore is a margin of about 10% (Calculated), and profit rose about 141%, a much smaller jump than revenue.

Two other points stand out. The customer base has broadened: the top five customers were about 30% of FY26 revenue against almost 100% in FY25 (Reported). And cash flow turned negative in the June 2026 quarter as more money was held in prepaid balances, after a positive FY26 (Reported).

Paramotor cash flow and balance sheet

Paramotor has no debt and a small but fast-growing equity base. However, cash flow has not kept pace with profit. Operating cash flow was ₹27.91 crore in FY26, almost flat on FY25, while profit more than doubled. In the June 2026 quarter, it turned negative at ₹46.30 crore as money got tied up in prepaid instrument balances (Reported, from the UDRHP-I).

Return on equity was 92.26% in FY26 (Reported). That looks exceptional, but it comes from a very small equity base. Meanwhile, about 69% of FY26 revenue came from the reward points business, booked on a gross basis with about ₹393.98 crore of redemption costs. Therefore, revenue growth overstates the growth in the company’s own earnings.

Of the ₹698 crore fresh issue, ₹355 crore is earmarked for customer acquisition and brand promotion, ₹94 crore for technology and cloud, and ₹38 crore for office infrastructure (Reported).

Paramotor Digital IPO valuation and GMP

No valuation, price band or GMP exists yet. Because revenue is booked gross, revenue multiples will flatter or penalise the company depending on the peer; profit and cash-flow multiples will be the fairer comparison once a price is set. Any grey-market figure before a price band is not linked to a real offer; see what IPO GMP means.

Paramotor Digital IPO review: strengths and risks

Strengths

• Profitable, with June-quarter profit of ₹23.8 crore already about 40% of the FY26 total.
• A wider customer base and a fast-growing user count.
• Most of the issue is fresh money for the company.

Risks

• Short track record: the business that now produces most revenue launched in August 2025.
• Revenue optics: gross booking makes revenue growth look larger than the economic growth.
• Working capital and cash flow: prepaid balances tie up cash, and operating cash flow was negative in the June quarter.
• Regulation: prepaid instruments and gift cards are RBI-regulated, and rule changes can affect the model.
• Dependence on partners: it relies on banks and licensed issuers for cards and on aggregators for vouchers.

What happens next

• Public comments on the UDRHP-I (21 days from 14 October), then UDRHP-II.
• The RHP with price band, lot size and dates. We will update this page then; see IPOs with confirmed dates meanwhile.

Paramotor Digital Technology IPO: frequently asked questions

Sources: Paramotor Digital UDRHP-I (SEBI) · Kotak Neo · IBS Intelligence · FinTech BizNews · YourStory

Disclaimer: This article is for information and education only and is not investment advice. Draft terms can change in the red herring prospectus.