Highlights
Pine Labs IPO Details and Financial Insights
Pine Labs, a leading platform for merchant payments and lending, has submitted its Red Herring Prospectus (RHP) to the market regulator SEBI for its anticipated Initial Public Offering (IPO). This offer includes a new issue of equity shares valued at Rs 2,080 crore and an offer for sale (OFS) of up to 8.23 crore shares from current shareholders. Prominent investors involved in the OFS encompass Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.
Interestingly, the firm has decreased both the fresh issue and OFS portions in its RHP compared to the draft red herring prospectus (DRHP) submitted in June.
Lead Managers and Regulatory Compliance
Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies have been engaged as book-running lead managers for the offering. This IPO, initiated under Regulation 6(2) of SEBI’s ICDR regulations, does not meet the criteria outlined in Regulation 6(1) of the same set of rules.
Listing Plans and Subscription Timing
The equity shares are intended to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The subscription period will commence on November 7, 2025, and conclude on November 11, with the anchor book opening on November 6.
Utilisation of Proceeds
The RHP indicates that Pine Labs aims to use the funds from the fresh issue for repaying certain debts, investing in subsidiaries, upgrading IT assets, expenditures on cloud infrastructure, acquiring digital checkout points, and enhancing technology development initiatives.
As per the DRHP, Peak XV holds the largest external share with a stake of 20.25%, followed by Temasek at 7.06% and PayPal at 5.98%. Actis Pine Labs Investment has a share of 5.75%, while Mastercard and Alpha Wave own stakes of 5.22% and 3.37%, respectively.
Financial Performance
On the financial side, 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. Concurrently, net losses have reduced by 57% to Rs 145 crore during the same timeframe. Notably, in the first quarter of FY26, the company achieved profitability, reporting a net profit of Rs 4.7 crore on a revenue of Rs 616 crore.
