PhonePe IPO, Jan. 24 -- PhonePe's proposed initial public offering, expected to rank among India's largest listings in 2026, is drawing attention for a striking reason: despite heading to the public markets, there is virtually no rush among existing shareholders to cash out.

The IPO has been structured entirely as an Offer for Sale (OFS), with majority shareholder Walmart planning to dilute around 9% of its holding. However, the decision is not driven by a shift in investment view or a desire to book profits. Instead, the partial divestment is a regulatory necessity.

Under SEBI rules, listed companies are required to maintain a minimum public shareholding of about 10%. Walmart's stake sale is therefore essential to meet this threshold a...