Big announcement by PhonePe before bringing IPO...?
The giant fintech company PhonePe has converted from a private company to a public limited company before bringing IPO. PhonePe said in a regulatory filing with the Registrar of Companies (ROC), members are informed that as one of the necessary conditions for the process of initial public offering (IPO), it is necessary for the company to convert into a public limited company under the Companies Act, 2013. With this, the name of the company will be changed from PhonePe Private Limited to PhonePe Limited.
Why is it necessary to become a public limited company?
Let us tell you that through IPO, the company sells shares in the primary market for the public for the first time. Now since a private company does not have permission to issue shares to the public. Whereas becoming a public limited company allows the company to be listed on the stock exchange. Listing means that the shares of the company are now available to the public and now they can be bought or sold in the stock market. The company can raise a large amount of capital by selling shares to the public through IPO.
Announced to bring IPO in February
Let us tell you that Walmart-backed wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payment company PhonePe had announced to bring IPO on february 20. According to the report of Moneycontrol, on february 25, the company chose mahindra BANK' target='_blank' title='kotak mahindra-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra capital, JP Morgan, Citi and Morgan Stanley as advisors for the IPO.
It is worth noting that PhonePe is the first indian company to shift its business from singapore to India. The company is owned by Walmart. During the transfer from singapore to india in the year 2022, the company also had to pay tax of about Rs 8,000 crore to the government.
Led by PhonePe founder and CEO sameer Nigam, PhonePe raised $100 million in a $1 billion funding round in 2023, with a pre-money valuation of $12 billion. Walmart holds the largest number of shares, while other investors include Microsoft, General Atlantic, tiger Global, Ribbit capital, TVS capital, Tencent and qatar Investment Authority.
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