NEW DELHI, India: Indian fintech firm PhonePe has temporarily halted plans for an initial public offering, citing geopolitical tensions and volatility in global financial markets.
The company, which Walmart backs, said on March 16 that it will resume preparations for a listing once conditions in global capital markets stabilise.
PhonePe operates India's most widely used digital payments app and has been preparing for an IPO that could value the company between US$9 billion and $10.5 billion, Reuters reported earlier this month.
According to its IPO filing, Walmart plans to reduce its stake in the company by about 12% as part of the offering. Investors Tiger Global and Microsoft also intend to exit their holdings.
Together, the three shareholders are expected to sell roughly 50.7 million shares in the IPO. PhonePe itself does not plan to issue any new shares as part of the listing.
"We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India," said Sameer Nigam, PhonePe's chief executive officer.
The decision to pause the IPO comes as global markets remain unsettled by the ongoing conflict in the Middle East.
The war has weakened investor sentiment worldwide as markets assess the risk of a prolonged geopolitical crisis and its potential impact on economic conditions.
