PhonePe’s ₹12,000 crore IPO gets SEBI approval
PhonePe, the largest company in the digital payments and UPI market, will soon launch its IPO. The company has received approval from the stock market regulator SEBI. Following this approval, the company will soon file its updated draft prospectus (DRHP).
This IPO could be worth approximately ₹12,000 crore (US$1.35 billion). The company’s total valuation is estimated at US$15 billion (approximately ₹1.33 lakh crore). PhonePe will go public entirely through an Offer for Sale (OFS). This means the company will not issue any new shares; instead, its existing investors will sell their stake.
This will be the second-largest IPO in India by a digital payments company, after Paytm’s ₹18,000 crore IPO in 2021.
Preparing to raise ₹12,000 crore through the IPO
Through the IPO, major investors such as Walmart, Tiger Global, and Microsoft may sell a combined 10% stake. Walmart currently holds more than a 73% stake in the company. For this IPO, the company has appointed major banks like Kotak Mahindra Capital, Citibank, Morgan Stanley, and JP Morgan as its advisors.
PhonePe: The number 1 company in the UPI market
PhonePe’s biggest strength is its dominance in the UPI market. The company holds approximately 45 percent of the total digital payments market share in the country. Its closest competitor, Google Pay, is in second place with a 35% share.
PhonePe processes approximately 1,000 crore transactions every month. The total value of these transactions exceeds ₹12 lakh crore per month. The company currently has over 53 crore registered users.
