MUMBAI: Walmart-backed PhonePe has put its IPO on hold amid volatility in the markets, which have fallen nearly 7% since the start of the Middle East conflict. The fintech firm said in a statement on Monday that it will resume the listing process once there is some stability in global capital markets. CEO Sameer Nigam said, “We sincerely hope for an early return of peace to all affected areas. We remain committed to the public listing in India.” The delay in PhonePe’s targeted $1.3 billion IPO, which was the second-largest public issue by a startup after Paytm’s 2021 listing, and a major liquidity event for its early backers perhaps underline the broader risks of a temporary slowdown in the domestic IPO market, which was bullish last year. TOI recently reported that many companies are delaying raising funds amid volatility in the West Asian markets. PhonePe’s IPO is an offer for sale (OFS) issue; Tiger Global and Microsoft will exit the company completely, while parent Walmart, which holds about 72% stake in the company, is reducing its stake by 10%. Walmart’s first local business to go public, PhonePe was initially planning to list on the stock exchanges in April. PhonePe, which was previously valued at $12 billion, is understood to be eyeing a valuation of up to $15 billion in the IPO, a target that will be difficult to achieve in the current market scenario. Amit Ramchandani, MD and CEO, Investment Banking, Motilal Oswal Financial Services, said, “Given the volatility in secondary markets, some near-term decline in primary market activity is natural…Companies are being more calibrated to the timing, but we are not seeing any structural downside.”
