Shares of Indian fintech companies witnessed strong buying interest on Monday following reports that fintech unicorn Razorpay has confidentially submitted draft papers to the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).

One MobiKwik Systems was among the top gainers, rising more than 5 percent during the trading session. Shares of Paytm parent One 97 Communications advanced up to 4 percent, while Pine Labs also gained over 2 percent amid positive sentiment surrounding the fintech sector.

Market participants viewed Razorpay's IPO filing as a significant development for India's digital financial services ecosystem. The proposed public issue is expected to bring renewed investor focus to fintech businesses and could improve valuation sentiment across the sector.

According to reports, Razorpay's IPO is expected to raise approximately USD 500-600 million, although the final issue size may vary depending on market conditions and investor demand. Earlier reports had indicated that the company was targeting a larger fundraising of more than USD 700 million.

Razorpay has reportedly appointed Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as advisors for the proposed public issue. The confidential filing route allows companies to begin regulatory review while keeping sensitive information private until a later stage of the listing process.

Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay has emerged as one of India's leading fintech platforms, providing payment processing, banking and financial technology solutions to businesses. The company is backed by prominent investors including GIC, Peak XV Partners and Tiger Global Management.

The anticipated IPO is being closely watched by investors as it could become one of the notable fintech listings in India and potentially set the tone for future public offerings from the sector.