Mint ·
PhonePe may restart IPO process after new MDR rules bring clarity
NPCI’s decision to allow a 0.4% fee on high-value UPI transactions from 15 October gives the payment giant long-awaited revenue visibility, rekindling its IPO plans, two sources told Mint.
PhonePe Ltd is evaluating options to restart its initial public offering (IPO) process after the National Payments Corporation of India (NPCI) introduced a 0.4% merchant discount rate (MDR) on large UPI transactions effective next month, according to two people familiar with the matter. MDR is the fee collected from merchants for processing digital payment transactions.
While a share sale is not likely anytime soon, the notification on transaction fee parameters provides structural clarity that facilitates a path to public equity markets, these people said, asking not to be identified as the details are private.
For context, PhonePe said on 16 March that it had paused its listing plans due to global capital market volatility and geopolitical tensions. According to its latest IPO documents, filed with Sebi on 21 January, the IPO was a pure offer for sale of up to 50.66 million shares, led by major shareholder Walmart Inc, along with other prominent investors such as Tiger Global and Microsoft Corp. Before putting its IPO plans on hold, the company was looking to list at a valuation of $9 billion to $10.5 billion, according to a PTI report.
