Public Limited Company became PhonePe before IPO

PhonePe: The legendary Fintech company has converted from a private company to a public limited company before bringing PhonePe IPO. Phonpes said in the regulatory filing filed with the Registrar of Companies (ROC), as one of the conditions required for the initial public offering (IPO) process, the company is required 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 know that through the IPO, the company sells shares in the primary market for the first time. Now that a private company is not allowed to issue shares to the public. Whereas by becoming a public limited company, the company gets permission for listing in the stock exchange.

Listing means that the shares of the company are now available to the public and now they can be purchased or sold in the stock market. The company can raise large amounts of capital by selling shares to the public through IPO.

Announcement to bring IPO in February

Let us know that Walmart -backed digital payment company PhonePe had announced to bring an IPO on 20 February. According to the Moneycontrol report, on 25 February, the company chose Kotak Mahindra Capital, JP Morgan, City and Morgan Stanley as consultants for the IPO.

Significantly, PhonePe is the first Indian company to shift its business from Singapore to India. Walmart is owned by the company. During the transfer from Singapore to India in the year 2022, the company also had to pay a tax of about Rs 8,000 crore to the government.

PhonePe raised $ 100 million in a $ 1 billion funding round in 2023, under the leadership of PhonePe Founder and CEO Sameer Nigam, in 2023, with a pre-money valuation $ 12 billion. Walmart has the most shares of it, while other investors include Microsoft, General Atlantic, Tiger Global, Rebit Capital, TVS Capital, Tensent and Qatar Investment Authority.

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