After receiving approval from the Securities and Exchange Board of India (SEBI), PhonePe has submitted its Updated Draft Red Herring Prospectus (UDRHP), advancing its much-anticipated public listing.
The firm had originally filed confidential IPO documents in September 2024 and is now expected to enter the market shortly.
As outlined in the UDRHP, the public offering will include an offer for sale of up to 50,660,446 equity shares, led by its main stakeholder Walmart along with other prominent investors like Tiger Global and Microsoft.
PhonePe dominates the UPI market in India, capturing more than 48% of the market share based on transaction value, having processed 9.8 billion transactions just in December, according to the latest NPCI data.
The company has experienced steady revenue growth over the years, benefiting from diverse income streams while continuously improving its financial results. PhonePe boasts a remarkable roster of investors, with Walmart being the primary stakeholder.
Other prominent investors include General Atlantic, Ribbit Capital, TVS Capital, Tiger Global, Microsoft, and the Qatar Investment Authority. As part of the IPO process, Walmart, the largest shareholder of PhonePe, will sell 9% of its stake, while Tiger Global intends to reduce its stake by 0.2% and Microsoft plans to offload 0.7%.
Here are some of the key risks listed by the company in its Updated Draft Red-Herring Prospectus (UDRHP):
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
