Pine Labs Rs 3,900 Crore IPO – Key Details and Insights

Pine Labs is a leading merchant payments and lending platform now pursuing an IPO worth Rs 3,900 crore. Over the past four months, the firm has issued Employee Stock Ownership Plans (ESOPs) amounting to Rs 564.75 crore, with a significant portion — Rs 243 crore — granted to its Chief Executive Officer, Amrish Rau.

Overview of ESOPs and Their Impact

According to the red herring prospectus, Pine Labs had established an ESOP pool of 6.15 crore options worth Rs 1,360 crore as of June 30, 2025. In the subsequent four months, from July 1 to November 1, the company added another 2.55 crore options, bringing the total to 8.7 crore. Out of these, 2.75 crore options were exercised and converted into equity shares, with exercise prices between Rs 5.4 and Rs 156. However, some options were forfeited or lapsed, leaving a total of 5.89 crore outstanding ESOP options, valued at around Rs 1,300 crore ($148 million).

Distribution of ESOP Options

Of the 2.55 crore options granted during the last four months, 1.1 crore were given to CEO Amrish Rau, while other key managerial personnel received the rest. Before June 2025, Rau possessed 2.31 crore options, which brings his total to 3.41 crore, valued at Rs 755.6 crore.

Financial Breakdown of the IPO

The Rs 3,900 crore IPO consists of a fresh equity issue amounting to Rs 2,080 crore, along with an offer for sale (OFS) that could span up to 8.23 crore shares valued at Rs 1,820 crore from existing shareholders. In this offering, early investor Peak XV is expected to receive approximately Rs 508.4 crore, translating to a return of nearly 40 times its initial investment. Other shareholders such as Madison India, Sofina Ventures, Temasek, PayPal, Mastercard, Invesco, and Lone Cascade are also set to participate in this share sale.

Pine Labs Financial Performance

The company experienced a year-on-year revenue increase of 28.5%, reaching Rs 2,274 crore in FY25, compared to Rs 1,769 crore in FY24. Meanwhile, its net loss decreased significantly by 57%, landing at Rs 145 crore. Notably, Pine Labs achieved a milestone by returning to profitability in the first quarter of FY26, reporting a net profit of Rs 4.7 crore on revenues of Rs 616 crore.