PhonePe Picks Banks for IPO at up to $15 Billion Valuation: Report
In a significant development, PhonePe, the digital payments platform owned by Walmart, has selected four banks to advise on its planned initial public offering (IPO) in FY26. According to a report by Moneycontrol, the banks chosen are Kotak Mahindra Capital, JPMorgan Chase, Citi, and Morgan Stanley. The report suggests that PhonePe is seeking a valuation of up to $15 billion in the IPO, making it one of the most anticipated and largest IPOs in the Indian market.
The selection of advisors for the IPO is a crucial step in the process, as it will help PhonePe navigate the complexities of the public markets and achieve its desired valuation. The chosen banks will work closely with PhonePe’s management to prepare the company’s financial records, assess its valuation, and structure the IPO to maximize returns for investors.
The IPO is likely to be a combination of primary and secondary issuance of shares, which means that both fresh shares issued by PhonePe and existing shares held by its investors will be sold to the public. The exact composition of the IPO is yet to be determined, but it is expected to be a significant event in the Indian capital markets.
PhonePe has been expanding rapidly in recent years, driven by the growing adoption of digital payments in India. The company has partnered with several leading banks and financial institutions to offer its services, and has also ventured into new areas such as online lending and investments. Its strong growth trajectory and impressive financials have made it an attractive candidate for an IPO.
The $15 billion valuation that PhonePe is seeking is significant, and it would make the company one of the most valuable fintech companies in India. The valuation is based on the company’s strong financial performance, its dominant position in the digital payments market, and its ambitious plans for future growth.
PhonePe’s financials are impressive, with the company reporting a revenue of over Rs 1,500 crore in FY21. Its operating profit stood at over Rs 200 crore, and it had a net profit of over Rs 150 crore. The company’s revenue has grown at a CAGR of over 100% in the last three years, driven by the rapid growth of its transaction volume.
The IPO is expected to be a huge success, with institutional investors and retail investors alike eager to get a piece of the action. The issue is likely to be priced aggressively, with the company seeking to raise a significant amount of capital to fund its future growth plans.
The selection of advisors for the IPO is a significant step forward for PhonePe, and it is expected to pave the way for a successful listing. The chosen banks have extensive experience in advising companies on their IPOs, and they will work closely with PhonePe’s management to ensure a smooth and successful listing.
In conclusion, PhonePe’s selection of advisors for its planned IPO is a significant development in the Indian fintech space. The company’s ambition to raise up to $15 billion in its IPO is a testament to its confidence in its growth prospects and its ability to execute its plans. The issue is likely to be a huge success, with institutional investors and retail investors alike eager to get a piece of the action. As PhonePe prepares for its listing, it is expected to be one of the most anticipated and largest IPOs in the Indian market.
