"PhonePe, valued at about $12 billion in January 2023, was targeting a market capitalization of around $15 billion in its IPO, which could have raised as much as $1.5 billion. More recently, however, investment bankers working with PhonePe on its IPO had suggested lowering its valuation expectations to about $9 billion."
"Escalating tensions in the Middle East have rattled global financial markets and pushed oil prices higher, prompting investors to retreat from stock markets. India's benchmark equity indexes, the Nifty 50 and BSE Sensex, have each fallen about 9% over the past month, and hundreds of Indian stocks have recorded double-digit declines since the conflict started on February 28."
"We paused the process only because of the current market conditions, which are unrelated to PhonePe. PhonePe said any claims that the IPO is being paused due to valuation concerns are baseless."
PhonePe, India's largest digital payments platform valued at $12 billion, has postponed its IPO plans citing geopolitical tensions and volatile stock market conditions. The company had filed an updated IPO prospectus targeting a listing on Indian stock exchanges in 2024, with initial valuation expectations of $15 billion potentially raising $1.5 billion. However, investment bankers suggested reducing valuation to $9 billion amid market turmoil. Escalating Middle East tensions have caused Indian benchmark indexes to fall approximately 9% over the past month, with hundreds of Indian stocks experiencing double-digit declines. PhonePe denies valuation concerns drove the pause, attributing it solely to external market conditions. The IPO would have provided exits for major investors including Tiger Global, Microsoft, and Walmart, which planned to sell significant stakes while retaining control.
Read at TechCrunch
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