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). According to the updated filing, the issue will be entirely an offer for sale (OFS) of 5.06 crore equity shares by existing shareholders, including Walmart, Microsoft, and Tiger Global.
The IPO is expected to be a major event in the Indian startup ecosystem, with PhonePe aiming to raise significant capital to fuel its growth plans. The company has been expanding its services rapidly, including payments, insurance, and lending, and the funds raised through the IPO will be used to further accelerate its growth trajectory.
Walmart to reduce stake by around 9%
As part of the OFS, Walmart, the largest shareholder in PhonePe, will reduce its stake in the company by around 9%. Walmart had acquired a majority stake in PhonePe in 2016, and has since been supporting the company’s growth plans. The reduction in stake is expected to be around 9%, which will still leave Walmart as the largest shareholder in the company.
The stake reduction by Walmart is seen as a strategic move to unlock value for its shareholders, while also providing an opportunity for other investors to participate in PhonePe’s growth story. Walmart’s continued support to PhonePe is expected to be a major positive for the company, as it looks to expand its services and increase its market share in the digital payments space.
Microsoft and Tiger Global to fully exit
In a surprise move, Microsoft and Tiger Global, two of the smaller shareholders in PhonePe, have decided to fully exit their stakes in the company. Both Microsoft and Tiger Global had invested in PhonePe in earlier rounds, and their exit is expected to be a major development in the company’s IPO plans.
The exit of Microsoft and Tiger Global is seen as a strategic move, as both investors have likely realized significant returns on their investments in PhonePe. The company’s valuation has increased significantly over the past few years, driven by its rapid growth and expansion into new services.
IPO details
The IPO will be entirely an OFS of 5.06 crore equity shares, with no fresh issue of shares. The issue will be managed by a consortium of investment banks, including Morgan Stanley, Citigroup, and ICICI Securities. The IPO is expected to be priced in the range of Rs 900-1,000 per share, although the final price will be determined based on market conditions and investor demand.
The IPO is expected to be a major event in the Indian startup ecosystem, with PhonePe aiming to raise significant capital to fuel its growth plans. The company has been expanding its services rapidly, including payments, insurance, and lending, and the funds raised through the IPO will be used to further accelerate its growth trajectory.
Growth plans
PhonePe has been expanding its services rapidly, including payments, insurance, and lending. The company has been investing heavily in technology and marketing, and has been able to increase its market share in the digital payments space significantly.
The funds raised through the IPO will be used to further accelerate PhonePe’s growth plans, including expanding its services into new areas such as wealth management and financial services. The company is also expected to use the funds to increase its marketing and advertising spend, as it looks to increase its brand awareness and customer acquisition.
Conclusion
PhonePe’s updated IPO filing is a significant development in the Indian startup ecosystem, with the company aiming to raise significant capital to fuel its growth plans. The exit of Microsoft and Tiger Global, and the reduction in stake by Walmart, are expected to be major positives for the company, as it looks to expand its services and increase its market share in the digital payments space.
The IPO is expected to be a major event in the Indian startup ecosystem, and investors are likely to be keenly watching the company’s progress. With its rapid growth and expansion into new services, PhonePe is well-positioned to capitalize on the growing demand for digital payments and financial services in India.
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