Pine Labs Eyes October Listing, To Trim IPO Size To $700 Mn

Pine Labs IPO: Issue Subscribed 39% On Day 2 So Far

SUMMARY

Pine Labs is mulling trimming its IPO size by 30% as exiting investors are looking to cut back on OFS component

The fintech major filed its DRHP in June for an IPO, which will comprise a fresh issue of shares worth INR 2,600 Cr and an OFS of up to 14.78 Cr shares

The Mumbai-based company received SEBI nod for its public listing last week

Fintech major Pine Labs is reportedly looking to raise $700 Mn (about INR 6,178.5 Cr) via its initial public offering (IPO) next month.

Sources told Bloomberg that the company has already begun roadshows for its public listing and is aiming to list on the exchanges in the second half of October.

However, the fintech giant is reportedly reducing its public issue size to $700 Mn from $1 Bn earlier. The report further noted that Pine Labs’ existing backers decided to pull back, which led to the company trimming the size of the offer-for-sale (OFS) component.

Inc42 has reached out to Pine Labs for a comment on the matter and the story will be updated upon receiving their responses.

This follows Pine Labs receiving market regulator SEBI’s nod last week for its public listing.

The fintech major filed its DRHP with SEBI in June for its IPO, which will comprise a fresh issue of shares worth INR 2,600 r and an OFS element of up to 14.78 Cr shares. Existing investors including Mastercard, Peak XV Partners, Macritchie Investments, Paypal and cofounder Lokvir Kapoor are looking to offload their stakes as part of the OFS.

Peak XV Partners, Teamsek, and Paypal are some of the top shareholders in Pine Labs.

The company plans to deploy the fresh proceeds from the IPO to pay certain borrowings, invest in IT and cloud assets and bolster its international presence.

Founded in 1998 by Kapoor, Rajul Garg and Tarun Upadhyay, Pine Labs offers payment solutions such as point-of-sale (PoS) terminals and online payment gateways. It claims to serve over 5 Lakh merchants in India, the Middle East, and Southeast Asia.

On the financial front, Pine Labs’ net profit stood at INR 26.1 Cr in the nine month period ended December 2024 (9M FY25) against a loss of INR 151.6 Cr in the year ago period. Operating revenue surged 23% YoY to INR 1,208.2 Cr in the period under review.

This comes at a time when a host of fintech startups are making a beeline for the exchanges. While Groww filed its updated DRHP with SEBI earlier this week, other fintech players such as PhonePe and InCred are also in the race to get listed on the bourses.