Walmart-backed PhonePe pauses IPO plans amid volatility


A statue of a bull is displayed at the Bombay Stock Exchange (BSE) building in Mumbai, India, on Monday, March 9, 2020. Photographer: Dhiraj Singh/Bloomberg

MUMBAI: Walmart-backed Indian financial technology firm PhonePe has temporarily paused its initial public offering (IPO) plans, citing geopolitical tensions and volatility in global capital markets, the company said yesterday.

PhonePe plans to resume its listing process once there is stability in global capital markets, the firm’s statement said.

The company runs India’s most popular digital payments app and aims to list at a valuation of between US$9bil and US$10.5bil, Reuters had reported earlier this month.

Walmart will trim its stake in PhonePe by ‌about 12% in the IPO, while Tiger Global and Microsoft plan to exit their stakes, according to the company’s IPO filing.

The three firms will sell around 50.7 million shares in the offering, and PhonePe will not issue any new shares.

“We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India,” said Sameer Nigam, PhonePe’s chief executive officer.

Conflict in the Middle East has rattled market sentiment globally as investors grapple with the prospects of prolonged hostilities.

India is considering measures to support exports to the Middle East after shipments to West Asia were affected by conflict in the region, Trade Secretary Rajesh Agrawal said yesterday. — Reuters

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PhonePe , IPO , listing

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