New Delhi, Jan. 20 -- India's largest UPI payments player is inching closer to the public markets. PhonePe has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering, clearing a key regulatory milestone for what is shaping up to be one of the country's most closely watched fintech listings.

The Walmart-owned company is expected to seek a valuation of around $15 billion, with plans to raise nearly Rs 12,000 crore ($1.35 billion) through an offer for sale (OFS) by existing shareholders. The company is likely to file its updated Draft Red Herring Prospectus (DRHP) in the coming days.

PhonePe had earlier taken the confidential pre-filing route with SEBI in September, a framework ...