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 that the company is not looking to raise fresh capital through the IPO.
As per 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 reduction in Walmart’s holding in PhonePe, which currently stands at around 82%. The reduction in stake is likely to be a strategic move by Walmart to unlock value for its shareholders, while also providing an opportunity for other investors to participate in PhonePe’s growth story.
In addition to Walmart, smaller shareholders Microsoft and Tiger Global will fully exit their stakes in PhonePe through the IPO. Both Microsoft and Tiger Global have been early investors in PhonePe and have played a significant role in shaping the company’s growth strategy. Their exit from the company is likely to be a result of their investment cycle coming to an end, and they would be looking to book profits on their investments.
The updated DRHP filing by PhonePe is a significant milestone in the company’s journey towards listing on the Indian stock exchanges. The IPO is expected to be one of the most highly anticipated listings in recent times, given PhonePe’s strong market position and growth prospects. The company has been a pioneer in the digital payments space in India and has played a significant role in shaping the country’s payments landscape.
PhonePe’s decision to go public is also expected to provide a boost to the Indian startup ecosystem, which has been witnessing a surge in IPO activity in recent times. The listing of PhonePe is likely to be followed by other startups, which are looking to raise capital from the public markets to fuel their growth plans.
The IPO market in India has been witnessing a significant uptrend in recent times, with several companies listing on the stock exchanges and raising large amounts of capital. The trend is expected to continue, with several companies already having filed their DRHPs with SEBI and awaiting approval.
In terms of valuation, PhonePe is expected to be valued at around $10-12 billion, making it one of the most valuable startups in India. The company’s strong market position, coupled with its growth prospects, is expected to attract significant investor interest in the IPO.
The updated DRHP filing by PhonePe is also expected to provide more clarity on the company’s financials and growth plans. The company has been investing heavily in expanding its services and improving its technology platform, which is expected to drive growth in the coming years.
In conclusion, the updated DRHP filing by PhonePe is a significant development in the Indian startup ecosystem. The IPO is expected to be one of the most highly anticipated listings in recent times, and the company’s strong market position and growth prospects are likely to attract significant investor interest. The exit of Microsoft and Tiger Global, and the reduction in stake by Walmart, are also expected to provide an opportunity for other investors to participate in PhonePe’s growth story.
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