US-Iran war rattles markets, but Zepto, PhonePe press IPO plans
What's the story
Leading Indian consumer-tech companies Zepto and PhonePe have started engaging with foreign institutional investors (FIIs) for their upcoming initial public offerings (IPOs). The meetings are being held across global financial hubs including Singapore, Hong Kong, the UK and the US. This comes despite extreme market volatility due to the ongoing conflict in West Asia between US-Israel and Iran.
Market volatility
Impact of West Asia conflict on global markets
The ongoing West Asia conflict has triggered a wave of volatility in both global and domestic stock markets. Nifty 50 index has declined over 5% this week, its worst performance since June 2022. The situation has resulted in the blockage of critical sea lanes for crude oil, gas transport, and other commodities. This has raised concerns over potential supply chain disruptions and rising inflation across economies worldwide, including India.
IPO strategy
Zepto and PhonePe pressing ahead with IPO plans
Despite the market volatility, Zepto and PhonePe are pushing ahead with their IPO plans. The companies have already held meetings with FIIs in several global financial hubs and will continue to do so in the coming days. The final fundraising amount and timelines for these IPOs will depend on market conditions at the time of launch.
Launch timeline
Timeline for Zepto and PhonePe's IPOs
According to reports, Zepto is targeting a June launch for its IPO. The company is said to be "going full steam ahead with its IPO plans" and has received a positive response from investors. PhonePe, on the other hand, has already got approval from the Securities and Exchange Board of India (SEBI) for its IPO. Zepto is yet to receive approval from the market regulator.
Investor influence
Gulf investors' role in Indian IPOs
Gulf-based investors are a small part of Indian IPOs, which limits their potential impact on large Indian IPOs like Zepto and PhonePe. Apart from one or two sovereign wealth funds, there aren't many major investors from the Gulf who participate heavily in Indian IPOs.