47.09 lakh options exercised—PhonePe’s board cleared a bulk early‑exercise, allowing employees to lock in shares before a listing.
The exercise was settled on a net basis: a portion of the options was withheld to cover taxes while the remainder was converted into equity shares, giving employees a tangible stake in the future public entity.
Walmart reported a $0.7 billion non‑cash charge linked to the modified share‑based plans, pushing its total share‑based compensation expense to $3.6 billion—up 30.1% from $2.8 billion in fiscal 2025.
The dilution narrative is not new; Walmart’s stake slid from 89% to 84% in 2024 after a $0.7 billion equity round, now falling to 73% after the early‑exercise, a 11‑point drop.
CEO Sameer Nigam declined to set an IPO date, noting that the merchant‑discount‑rate tweak will improve economics but not guaranteeing a fiscal‑2027 listing. The comment leaves the market guessing.
PhonePe’s IPO dossier proposes a sale by existing shareholders, up to 4.59 crore shares—9.06% of paid‑up equity—without a fresh issue, positioning the company for a potential market debut once the regulatory green light arrives.