PhonePe Files Updated DRHP With SEBI

PhonePe has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). As per the updated DRHP, the IPO comprises only an offer for sale and no fresh issue. The company’s IPO comprises an offer for sale of up to 50,660,446 equity shares of face value of ₹1 each.

Other Vital IPO Details

Since the IPO consists of only an offer for sale, PhonePe will not receive any proceeds from the offer. The selling shareholders will receive the proceeds after deduction of offer-related expenses. The selling shareholders include WM Digital Commerce Holdings Pte. Ltd, Tiger Global PIP 9-1 Ltd, and Microsoft Global Finance Unlimited Company. They will be offloading up to 45,942,496, 1,039,160, and 3,678,790 equity shares, respectively.

KFin Technologies has been appointed as the IPO’s registrar. There are four book-running lead managers for this issue, including Kotak Mahindra Capital Company Ltd, JP Morgan India Pvt Ltd, Citigroup Global Markets India Ltd, and Morgan Stanley India Company Pvt Ltd.

PhonePe’s IPO is a 100% book-built offer. As per the updated DRHP, not less than 75% of the offer is for qualified institutional buyers (QIBs). Non-institutional bidders (NIBs) will not get more than 15% of the offer, while individual investors or retail individual bidders will not get more than 10% of the shares in the offer.

What Financials Reflect?

PhonePe’s total income grew from ₹30,834.34 million in FY23 to ₹76,313.82 million in FY25, while its adjusted EBITDA margin turned positive to 20.76% in FY25 from -12.88% in FY23. According to industry watchers, rising income indicates that more people are using the company’s offerings and solutions. They also feel that a positive adjusted EBITDA margin could indicate better underlying economics.

Key Growth Strategies

As per the updated DRHP, PhonePe plans to grow its platform profitably. It also wants to invest in new platforms to diversify its business. It also looks forward to continuing its focus on delivering growth, positive profits, and free cash generation.

Investors’ Consideration

Investors can find out more about the IPO and PhonePe from the company's updated draft red herring prospectus available on SEBI's website. Going through the DRHP can give investors more insights about the company and its various aspects. It can also help them understand various risk factors associated with the IPO.

Sources:

SEBI

Outlook Business