PhonePe Shelves $1.5B IPO at $15B Valuation, Walmart Sets March 20 Ex-Dividend
PhonePe, majority-funded by Walmart, shelved plans for a $1.5B IPO at a targeted $15B valuation after oil-price spikes and Indian benchmarks fell 9%, delaying Walmart’s exit for up to 9% of its stake. Walmart will trade ex-dividend March 20 with a boosted payout April 6, reinforcing its dividend strength.
1. PhonePe Shelves IPO Plans
PhonePe, India’s largest digital payments platform majority-owned by Flipkart and Walmart, has paused its planned IPO due to heightened geopolitical tensions and market volatility. The fintech had filed an updated prospectus targeting a $15 billion valuation and up to $1.5 billion in proceeds, but may restart once benchmarks stabilize.
2. Impact on Walmart Share Sale
Walmart had intended to sell roughly 45.9 million shares (approximately 9% of PhonePe) as part of the float, alongside early backers Tiger Global and Microsoft. The shelving of the IPO defers this exit, potentially delaying cash inflows and impacting Walmart’s near-term capital allocation strategy.
3. Walmart Dividend Boost
Separately, Walmart’s board set an ex-dividend date of March 20 with payment on April 6, reflecting a boosted payout for shareholders. The retailer’s extensive network of over 10,000 stores underpins its cash flow resilience, supporting its ongoing dividend policy.