Pine Labs IPO To Open On Nov 7, Cuts Issue Size

Fintech major Pine Labs has filed its RHP for its initial public offering (IPO), which will comprise a fresh issue of up to INR 2,080 Cr and an offer for sale (OFS) of up to 8.23 Cr shares.

Notably, the company has cut the size of the public issue. As per its DRHP, the IPO was to comprise a fresh issue of up to INR 2,600 Cr and an OFS of up to 14.78 Cr shares

The IPO will open on November 7 and close on November 11. Anchor bidding will take place on November 6. The shares are expected to list on the exchanges on November 14.

Most investors have reduced the number of shares they would sell via the OFS. The biggest reduction came from Peak XV Partners Pine Investment Holdings, which has cut its OFS size to 2.3 Cr from 3.9 Cr in the DRHP. Cofounder Kapoor has cut his OFS size to 0.22 Cr shares from 0.38 Cr earlier.

Actis Pine Labs Investment Holdings, Macritchie Investments, PayPal, and Mastercard have also reduced their OFS portions in the RHP. While Actis will offload up to 0.88 Cr shares, Macritchie plans to sell 0.87 Cr shares. PayPal will sell 0.67 Cr shares via the OFS and Mastercard will offload 0.59 Cr shares. 

MW XO Digital Finance Fund Holdco Limited will not be selling any shares via the OFS. As per the DRHP, it was to offload 0.43 Cr shares. Meanwhile, Sofina Ventures S.A. is a new addition to the list of shareholders planning to offload shares. It will sell 0.20 Cr shares.

Pine Labs received SEBI’s nod for its IPO in September.

As per the RHP, Peak XV holds 20.25% stake in Pine Labs, followed by Macritchie with 7.06% stake. While PayPal has a 5.98% stake in the company, Actis and Mastercard Asia/Pacific own 5.75% and 5.22% stake, respectively. Kapoor holds 1.96% stake in Pine Labs. 

The company plans to use INR 532 Cr from the fresh issue proceeds for repayment/ prepayment of borrowings availed by it. It will utilise INR 60 Cr for investments in its subsidiaries, including Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE, to expand its international presence. 

The company has earmarked INR 760 Cr for investments in IT assets, cloud infrastructure, procurement of digital check-out points and technology development initiatives. Of this, INR 230 Cr will go towards IT and cloud infrastructure, INR 430 Cr will be used for digital check-out procurement and INR 100 Cr for technology development. 

The remaining proceeds will be used for general corporate purposes and unidentified inorganic acquisitions.

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

On the financial front, Pine Labs posted a net profit of INR 4.8 Cr in Q1 FY26 as against a net loss of INR 27.9 Cr in the year-ago quarter. However, the company would have remained in the red if not for a tax credit of INR 9.6 Cr in Q1 FY26. The fintech company’s operating revenue zoomed 17.8% to INR 615.9 Cr during the quarter from INR 522.4 Cr in Q1 FY25.

In FY25, Pine Labs posted a 57.4% decline in its net loss to INR 145.5 Cr from INR 341.9 Cr in the previous fiscal year. Revenue from operations rose 28.5% to INR 2,274.3 Cr from INR 1,769.5 Cr in FY24.