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, marking a crucial step towards the company’s listing on the stock exchanges.
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 expected to result in a significant change in the company’s shareholding pattern. On the other hand, smaller shareholders Microsoft and Tiger Global will fully exit their stakes in PhonePe, as part of the IPO process.
The IPO is expected to provide a liquidity event for existing shareholders, while also giving the company an opportunity to raise capital and expand its operations. PhonePe has been at the forefront of India’s digital payments revolution, with its user base and transaction volumes growing exponentially over the past few years.
The company’s decision to file updated IPO papers comes at a time when the Indian IPO market is witnessing a resurgence of activity. Several high-profile IPOs have been lined up in recent months, and PhonePe’s listing is expected to be one of the most closely watched events in the market.
PhonePe’s journey began in 2015, when it was founded by Sameer Nigam, Rahul Chari, and Burzin Engineer. The company started as a mobile payments platform, allowing users to make transactions using their mobile phones. Over time, PhonePe expanded its services to include a range of payment options, including UPI, credit and debit cards, and net banking.
In 2016, PhonePe was acquired by Flipkart, India’s largest e-commerce company, which was later acquired by Walmart in 2018. Since then, PhonePe has continued to grow rapidly, with its user base expanding to over 300 million users. The company has also partnered with several leading banks and financial institutions to offer a range of financial services, including insurance, investments, and credit products.
The exit of Microsoft and Tiger Global from PhonePe’s shareholding structure is not surprising, given the company’s growth trajectory and the changing dynamics of the digital payments market. Both Microsoft and Tiger Global have been early investors in PhonePe, and their exit is expected to provide them with a significant return on their investment.
Walmart’s decision to reduce its stake in PhonePe, on the other hand, is a strategic move to unlock value for its shareholders. As the largest shareholder in PhonePe, Walmart has been instrumental in shaping the company’s growth strategy and providing it with the necessary resources to expand its operations.
The IPO is expected to be a significant event for PhonePe, marking a new chapter in the company’s journey. With its strong brand, large user base, and expanding range of services, PhonePe is well-positioned to capitalize on the growing demand for digital payments in India.
In conclusion, PhonePe’s decision to file updated IPO papers is a significant development for the company and its shareholders. With Walmart reducing its stake and Microsoft and Tiger Global exiting their stakes, the company’s shareholding structure is expected to undergo a significant change. As PhonePe prepares to list on the stock exchanges, it is expected to be one of the most closely watched IPOs in the market.
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