Sign in Subscribe
Initial public offerings

Pine Labs Reduces IPO Size, Eyes Valuation of Over $3 Billion

Strategic Insights

— 1 min read

Pine Labs Ltd. has dialed back the scope of its initial public offering, setting its sights on a valuation of more than Rs.25,300 crore (approximately $3 billion) as it prepares for a stock market debut on November 14. The fintech company's reduced IPO size now comprises 17.64 crore shares, including 9.41 crore new shares and 8.23 crore via an offer for sale, priced between Rs.210 and Rs.221 apiece. The IPO's proceeds will be used to repay debt, invest in subsidiaries, and expand its global operations.

Key Takeaways:

  • Pine Labs has reduced the size of its initial public offering (IPO) and aims to raise up to Rs.3,900 crore.
  • The company's IPO comprises 17.64 crore shares, including 9.41 crore new shares and 8.23 crore via an offer for sale.
  • The lot size for retail investors is set at 67 shares, translating to a minimum investment of Rs.14,807.
  • Pine Labs will use the IPO proceeds to repay debt, invest in subsidiaries, and expand its global operations.
  • The company has international operations in Malaysia, the United Arab Emirates, Singapore, Australia, the United States, and parts of Africa.
  • Pine Labs competes with prominent fintech companies such as Paytm, Razorpay, Infibeam, and PhonePe in India, and Adyen, Shopify, and Block overseas.
  • Despite not turning a profit yet, Pine Labs has shown growth in revenue and EBITDA, indicating potential profitability in the future.

Statistics:

  • The reduced IPO size comprises 17.64 crore shares, including 9.41 crore new shares and 8.23 crore via an offer for sale.
  • The IPO's price band is fixed between Rs.210 and Rs.221 apiece.
  • The IPO aims to raise up to Rs.3,900 crore.
  • Pine Labs processed payments worth Rs.11.42 lakh crore in gross transaction value across 5.68 billion transactions in FY25.
  • The company's revenue from operations increased 27.5% year-on-year to Rs.2,327.09 crore in FY25.
  • Pine Labs' EBITDA grew 125.5% year-on-year to Rs.356.72 crore in FY25, adjusting for ESOPs.

Sources:

  • Hindustan Times, Redseer Report, Pine Labs' Red Herring Prospectus (RHP), Hindustan Times, Pune Labs UAE, Pine Labs Malaysia, Qwikcilver Singapore.

Read more