IPO-Bound Pine Labs Nets INR 1,754 Cr From Anchor Investors

Pine Labs IPO: Issue Subscribed 72% On Day 3 So Far

SUMMARY

The company allotted 7.93 Cr equity shares to 71 anchor investors, including SBI, Nomura India, HSBC, ICICI Prudential, among others

Of the 7.93 Cr shares, 3.75 Cr shares (or 47.26% of the total allocation) were allocated to 12 domestic mutual funds through a total of 30 schemes

Pine Labs’ IPO will comprise a fresh issue of up to INR 2,080 Cr and an OFS component of up to 8.23 Cr shares

Ahead of the commencement of bidding for its public issue today, fintech major Pine Labs has raised INR 1,753.8 Cr from anchor investors

The company allotted 7.93 Cr equity shares to 71 anchor investors, including SBI, Nomura India, Massachusetts Institute of Technology, HSBC, ICICI Prudential, Franklin Templeton Investment Morgan Stanley, Tata Digital India Fund, among others.

The company allotted the shares at INR 221 each, which is the upper end of the IPO price band.

Of the 7.93 Cr shares, 3.75 Cr shares (or 47.26% of the total allocation) were allocated to 12 domestic mutual funds through a total of 30 schemes.

“The board of directors of the company… has finalised allocation of 7,93,58,986 equity shares, to anchor investors at anchor investor allocation price of INR 221 per equity share (including share premium of INR 220 per equity share)…,” Pine Labs said in a filing with the BSE.

The three-day IPO closes on November 11. The fintech major’s IPO will comprise a fresh issue of up to INR 2,080 Cr and an offer for sale (OFS) component of up to 8.23 Cr shares. Early backers including Peak XV Partners, Temasek, PayPal and Mastercard will offload their stakes as part of the OFS.

Earlier this week, the company set a price band of INR 210 to INR 221 for its IPO. At the upper end of the spectrum, the total size of the IPO would be about INR 3,900 Cr and the startup would be valued at INR 25,377 Cr. The shares are expected to list on the bourses on November 14.

The company plans to deploy the fresh proceeds from the IPO to repay or prepay its borrowings, invest in overseas subsidiaries and bolster up its tech infrastructure

Founded in 1998 by Lokvir Kapoor, Tarun Upadhyay and Rajul Garg, Pine Labs offers digital payments solutions for merchants, consumer brands and enterprises in India and overseas markets like Malaysia, the UAE, Singapore, Australia, the US and Africa.

On the financial front, Pine Labs turned profitable in the first quarter (Q1) of fiscal year 2025-26 (FY26) on the back of a one-time tax credit of INR 9.6 Cr. The company reported a net profit of INR 4.8 Cr as against a loss of INR 27.9 Cr in Q1 FY25. Meanwhile, revenue from operations zoomed nearly 18% YoY to INR 615.9 Cr in Q1 FY26.

In FY25, Pine Labs reported a net loss of INR 145.5 Cr, down 57.4% YoY, against an operating revenue of INR 2,274.3 Cr, up 28.5% YoY.