Highlights
Pine Labs IPO: Merchant Payments and Lending Platform Initiates Public Offering
Pine Labs, a prominent merchant payments and lending platform, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as it prepares for an initial public offering (IPO) on Thursday.
The IPO encompasses a fresh issuance of equity shares valued at Rs 2,600 crore (approximately $305 million) along with an offer for sale (OFS) of 14.78 crore equity shares, as outlined in the DRHP.
Details of the Offer for Sale (OFS)
Peak XV plans to divest roughly 3.9 crore shares, which represents about 26.3% of the total offer for sale (OFS). Acitis Pine Labs Investment and Temasek will offload 1.49 crore and 1.48 crore shares, respectively. Additional participants in the OFS include PayPal, Mastercard Asia, Invesco, Madison India, Sofina, Lightspeed, BlackRock, along with individuals such as Amrish Rau, Lokvir Kapoor, and Kush Mehra.
As per the DRHP, Peak XV holds the largest external stake at 20.35%, followed by Temasek and PayPal with stakes of 7.1% and 6%, respectively. Actis Pine Labs Investment owns 5.78%, with Mastercard and Alpha Wave holding 5.24% and 3.39%, respectively. Amrish Rau maintains a 2.35% stake, with Lokvir Kapoor having 1.97%.
Listing Plans and Managers
Pine Labs aims to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The IPO will be overseen by Axis Capital, Morgan Stanley, CITI, JP Morgan, and Jefferies, all acting as book-running lead managers.
Use of Proceeds
According to the DRHP, the net proceeds from the fresh equity issue will be allocated towards repaying borrowings, investing in subsidiaries, enhancing technology, conducting research, and addressing other general corporate needs.
Financial Performance
In the initial nine months of FY25, the company recorded a remarkable 23% year-on-year increase in revenue, reaching Rs 1,208 crore, up from Rs 982 crore. Additionally, a net profit of Rs 26.1 crore was reported during this period.