PhonePe puts IPO plans on hold as volatility rattles primary market

PhonePe has deferred its plans to go public, joining a growing list of companies reassessing listing timelines amid heightened market volatility and uncertain global cues.

The digital payments firm, backed by Walmart, was widely expected to tap the capital markets this year. However, recent turbulence triggered by geopolitical tensions and sustained foreign investor outflows has prompted a pause in the process.

Market conditions have turned less favourable for new listings, with benchmark indices witnessing sharp swings and risk appetite weakening. Investment bankers indicated that companies are increasingly wary of launching initial public offerings in an environment where valuations may come under pressure and subscription demand could be uneven.

The delay also reflects caution among large issuers, particularly in sectors where valuations had seen a sharp run-up in recent years. For fintech firms, which are still navigating profitability concerns, market timing has become critical.

Data on foreign portfolio flows suggests a notable withdrawal of capital from Indian equities in recent months, further dampening sentiment in the primary market. This has led to a more measured approach from issuers, many of whom are choosing to wait for stability to return before proceeding with listings.

For now, the primary market is expected to remain subdued, with activity likely to pick up only once volatility eases and investor confidence shows signs of recovery.