Paytm shares jumped on Monday after rival PhonePe paused its IPO plans, easing near-term competition in digital payments. PhonePe cited geopolitical uncertainty and volatile global markets for deferring its listing. The move reflects broader market caution, with fintech firms reevaluating IPO timing and valuations amid heightened investor uncertainty and equity market volatility.

Shares of One 97 Communications, the parent of digital payments platform Paytm, rose nearly 4% to Rs 1014.8 apiece on the NSE on Monday after rival PhonePe said it would temporarily put its initial public offering plans on hold. The rally came as investors interpreted the development as easing near-term competitive pressure in the fintech space, particularly in digital payments and financial services distribution, where both companies operate.

PhonePe said it has decided to defer its proposed public market listing for now, citing heightened geopolitical uncertainty and volatility across global financial markets. The company said it will revisit its listing plans once conditions stabilise.

"We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India," Sameer Nigam, CEO of PhonePe, said in a statement.

The decision comes at a time when escalating geopolitical tensions in West Asia and broader market turbulence have made equity markets more volatile, prompting several companies preparing for IPOs to reassess their launch timelines.

Analysts say companies planning public offerings are increasingly evaluating whether to proceed at reduced valuations or delay launches until investor sentiment improves.