PhonePe files updated IPO papers, Microsoft, Tiger Global to exit
In a significant development, PhonePe, one of India’s leading digital payments companies, has filed its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The issue will be entirely an offer for sale of 5.06 crore equity shares by existing shareholders, indicating a major reshuffling of the company’s ownership structure.
According to the updated DRHP, Walmart, the largest shareholder in PhonePe, will reduce its stake in the payments firm by around 9%. This move is seen as a strategic decision by Walmart to unlock value from its investment in PhonePe, while still maintaining a significant stake in the company. Walmart had acquired a majority stake in PhonePe in 2018, as part of its acquisition of Flipkart, India’s largest e-commerce company.
In a surprise move, smaller shareholders Microsoft and Tiger Global will fully exit their stakes in PhonePe. Microsoft had invested in PhonePe in 2020, as part of a larger funding round, while Tiger Global had been an early investor in the company. The exit of these investors is seen as a sign of the company’s maturity and its ability to attract new investors.
The IPO is expected to be one of the largest in India’s technology sector, with PhonePe looking to raise funds to fuel its growth plans. The company has been expanding its services beyond digital payments, into areas such as lending, insurance, and investments. PhonePe has also been investing heavily in technology and marketing, to compete with other digital payments players in India.
The updated DRHP filing comes after PhonePe had initially filed its draft papers with SEBI in July 2022. The company had to refile its papers due to changes in its shareholder structure and business operations. The IPO is expected to be launched in the coming months, subject to regulatory approvals.
PhonePe’s decision to go public is seen as a significant milestone for India’s technology sector, which has been witnessing a surge in IPO activity in recent years. The company’s listing is expected to provide a boost to the Indian stock market, which has been facing headwinds in recent months.
The exit of Microsoft and Tiger Global from PhonePe is also seen as a sign of the company’s ability to attract new investors. PhonePe has been one of the most successful digital payments companies in India, with a strong track record of growth and innovation. The company’s IPO is expected to attract significant interest from investors, both domestic and international.
In conclusion, PhonePe’s updated DRHP filing is a significant development for India’s technology sector. The company’s decision to go public and the exit of Microsoft and Tiger Global are seen as positive signs for the company’s growth prospects. With its strong track record of innovation and growth, PhonePe is well-positioned to become one of the leading players in India’s digital payments sector.
As the Indian stock market continues to evolve, the listing of PhonePe is expected to provide a boost to investor sentiment. The company’s IPO is also seen as a sign of the growing maturity of India’s technology sector, which has been witnessing a surge in IPO activity in recent years.
The updated DRHP filing by PhonePe is a significant step towards the company’s listing, and investors will be closely watching the developments in the coming months. With its strong growth prospects and innovative business model, PhonePe is well-positioned to become one of the leading players in India’s digital payments sector.
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