Pine Labs IPO: Rs 1,754 Crore Raised from Anchor Investors

Pine Labs has raised Rs 1,754 crore from anchor investors in anticipation of its initial public offering (IPO), which is opening for subscriptions today. The company has allocated 7.93 crore equity shares at Rs 221 per share, which is at the upper end of the price band set between Rs 211 and Rs 221, according to a filing from the National Stock Exchange (NSE).

Participation of Institutional Investors

The anchor book has attracted interest from over 70 institutional investors, including both domestic mutual funds and global institutions. Notable participants include SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life, Nippon Life India, along with international entities like Morgan Stanley, Nomura, Amundi Funds, and The MIT Retirement Fund.

Strong Domestic Interest

Approximately 47% of the total anchor allocation was dedicated to 12 domestic mutual funds spread across roughly 30 schemes, reflecting a robust domestic appetite for the IPO.

Details of the IPO

Pine Labs’ IPO is valued at Rs 3,900 crore, comprising a fresh issue of Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares by current shareholders. The funds from the fresh issue will be allocated for debt reduction, technological improvements, and expansion into international markets.

Investment Returns

According to an analysis by Startup Superb, during the offer for sale (OFS), Peak XV Partners (previously known as Sequoia Capital India) is set to gain the most, with a remarkable return of 39.5X on its investment. Madison India and Sofina Ventures are also expected to achieve substantial profits, with returns of 5.6X and 4.7X, respectively.

Financial Performance

The red herring prospectus indicates that Pine Labs experienced a 28.5% year-on-year increase in revenue, reaching Rs 2,274 crore in FY25, up from Rs 1,769 crore in FY24. Meanwhile, net losses decreased by 57% to Rs 145 crore during the same timeframe. Impressively, in the first quarter of FY26, the company reported profitability, with a net profit of Rs 4.7 crore on revenue of Rs 616 crore.