[Update] Pine Labs IPO: Issue Subscribed 54% On Day 2

Update | November 10, 18:52 PM 

The IPO of fintech major Pine Labs continued to witness muted investor response on the second day of its bidding, with the issue getting subscribed a mere 54% by the end of the day. The issue received cumulative bids for 5.31 Cr shares against 9.78 Cr shares available for subscription on November 10. 

Leading from the front, the company’s employees continued to be the most bullish on the company’s public offering, oversubscribing their quota 4.9X. These investors bid for 6.48 Lakh shares against the 1.32 Lakh shares reserved for them. 

Meanwhile, retail investors (RIIs) subscribed to their quota by 87%, placing bids for 1.58 Cr shares against the 1.81 Cr shares earmarked for them. Following RIIs, qualified institutional buyers (QIBs) subscribed 64% of their quota by placing bids for 3.33 Cr shares against the 5.24 Cr shares reserved for them.

Non-institutional investors’ (NIIs) showed minimal interest in Pine Labs IPO. These investors bid for 32.78 Lakh shares against the 2.72 Cr reserved for them. This translated to a mere 12% subscription. 

Original | November 10, 13:42 PM

Fintech major Pine Labs’ IPO was subscribed 39% till 12:51 IST today, the second day of bidding. The issue received bids for 4.47 Cr shares as against 9.78 Cr shares on offer so far. 

Employees’ quota saw the highest interest and was oversubscribed 4.42X. It received bids for 5.84 Lakh shares against 1.32 Lakh shares on offer. 

Retail investors placed bids for 1.43 Cr shares against 1.81 Cr shares reserved, translating to 79% subscription. 

The non-institutional investors’ category was subscribed just 10%, getting bids for 27 Lakh shares as against 2.71 Cr shares available for bidding.

Qualified institutional placed bids for 2.69 Cr shares as against 5.24 Cr shares on offer, translating to 51% subscription. 

The fintech company has set a price band of INR 210 to INR 221 for the IPO, which will remain open for subscription until tomorrow. Pine Labs’ shares are expected to list on the bourses on November 14. 

The IPO comprises a fresh issue of up to INR 2,080 Cr and an offer-for-sale (OFS) component of up to 8.23 Cr shares. Peak XV Partners, Temasek, PayPal and Mastercard are among the investors offloading stakes via the OFS. 

At the upper end of the spectrum, the total size of the IPO is about INR 3,900 Cr and values the company at INR 25,377 Cr (about $2.8 Bn). 

Last week, Pine Labs raised INR 1,753.8 Cr from 71 anchor investors, including SBI Mutual Fund, Nomura India, Massachusetts Institute of Technology, HSBC, ICICI Prudential, Franklin Templeton Investment Morgan Stanley, Tata Digital India Fund, among others.

The company plans to deploy the fresh issue proceeds to repay or prepay its borrowings, invest in overseas subsidiaries, and bolster 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 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’ net loss narrowed 57% to INR 145.4 Cr from INR 341.9 Cr in the previous fiscal year. Operating revenue grew 28% to INR 2,274.3 Cr from INR 1,769.5 Cr in FY24.