PhonePe Ltd. has deferred its much-awaited IPO in India, citing the impact of the ongoing Iran war on investor sentiment and the wider stock market.
“We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India,” PhonePe Sameer Nigam said.
The fintech firm controlled by Walmart Inc. was reportedly eyeing a valuation of $9 billion-10.5 billion in an IPO. That was already at a discount to the $12-billion valuation that the company enjoyed when it raised $100 million in 2023.
Walmart is planning to offload about 12% stake in the PhonePe IPO, which will give an exit to investors Tiger Global and Microsoft Corp., according to a draft red-herring prospectus (DRHP) filed with India’s market regulator. Together, they will sell 50.7 million shares in the PhonePe IPO. No new shares will be on offer.
Iran war impact on India’s stock market
After two record-breaking years for IPOs in India, the prospect of a prolonged issuance drought is rapidly materialising on Dalal Street—thanks to the Iran war’s impact on stock market.
According to data compiled by Bloomberg, Indian companies have raised $1.5 billion in the current quarter from primary offerings, versus $2.3 billion raised during the same period last year.
This contraction is the clearest indicator yet that one of the world’s most vibrant venues for IPOs is decisively cooling. The retreat is compounded by mounting macroeconomic anxieties, including concerns over an impending economic slowdown, relentless foreign capital outflows, and a weakening Indian rupee.