PhonePe Puts IPO on Hold Due to War-Driven Market Volatility

As a precautionary measure, PhonePe has put its initial public offering (IPO) preparations on hold due to the ongoing conflict in Iran and certain regions of West Asia, as well as unstable global equities markets. The financial technology firm announced in a statement that it will resume its initial public offering (IPO) once the world's capital markets are stable again.

The CEO of PhonePe, Sameer Nigam, expressed the company's deepest wishes for an immediate end to the violence in all the impacted areas. He did not, however, specify a date by which the firm would resume its IPO plans. But according to people in the know, PhonePe would probably delay the IPO until June 2026 at the most.

New IPO Strategy of PhonePe

In January 2026, the fintech giant was approved by SEBI for the IPO. According to SEBI regulations, the company has up to 12 months to launch its initial public offering (IPO). Therefore, PhonePe can take its time and wait for market conditions and geopolitical tensions to stabilise before rushing into the initial public offering (IPO). The Walmart-owned company is reportedly aiming to conduct its initial public offering (IPO) by April with a valuation between $9 billion and $10.5 billion.

In accordance with the DRHP, PhonePe is planning to dispose of 5.07 Cr equity shares through an offer-for-sale (OFS) listing. Tiger Global and Microsoft will follow Walmart in selling approximately 4.59 Cr equity shares, which is the majority owner's portion. An initial public offering (IPO) of $900 million to $1.5 billion is being considered. Financially, the business had a 20% increase in its net loss during the first half of FY26, from INR 1,203.2 Cr to INR 1,444.4 Cr. Its top line increased from INR 3,459.7 cr in H1 FY25 to INR 4,174.5 cr, a 21% spike.

Israel-Iran Conflict Creating Havoc For Business Entities

Indian individuals and companies have not been spared the devastation caused by the ongoing war and strife in West Asia. This hostile situation began at the very end of February and is currently in its third week. Much of this is because of the conflict and disruptions to shipments stranded at the Strait of Hormuz, which has led to a shortfall of crude oil and LPG.

The Indian stock market has taken a beating over the last three weeks due to the continuing conflict. The Sensex and Nifty 50 have both fallen by more than 8% since the battle started in late February. Foreign institutional investors (FIIs) have been selling heavily and consistently across all market categories, which has contributed to the negative sentiment in the Indian market. Postponing PhonePe's initial public offering (IPO) could affect other listings in a domino effect. Its initial public offering (IPO) would have been a significant measure of market interest since it was one of the largest listings anticipated this year.