Pine Labs IPO listing date has been scheduled for tomorrow (Friday, November 14). Pine Labs IPO allotment was finalised yesterday (Wednesday, November 12). For those who have been allocated shares, the crediting of shares to demat accounts will occur today, Thursday, November 13. The process of refunding those who have not yet received their shares will likewise be finished today.
The fintech firm Pine Labs launched its IPO for subscription from Friday, November 7 to Tuesday, November 11. By the conclusion of the bidding period, the offering received a healthy response, particularly from retail investors who subscribed 1.22 times followed by qualified institutional buyers (QIBs) at 4 times. Retail investors showed a subscription rate of 1.22 times. Notably, on the third day of the IPO, the Pine Labs IPO subscription status stood at 2.46 times, as reported by the BSE.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, noted that the valuation appeared to be somewhat elevated, which was evident in the overall subscription activity. The Employees segment experienced the highest level of interest with a subscription rate of 7.7 times, followed by Qualified Institutional Buyers (excluding Anchor investors) at 4 times, while other investor categories exhibited subdued engagement.
Pine Labs IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employees has been reserved equity shares worth up to ₹25 million. A discount of ₹21 per equity share is being offered to eligible employees.
Tentatively, Pine Labs IPO basis of allotment of shares will be finalised on Wednesday, November 12, and the company will initiate refunds on Thursday, November 13, while the shares will be credited to the demat account of allottees on the same day following refund. Pine Labs share price is likely to be listed on BSE and NSE on Friday, November 14.
Let’s check what does Pine Labs IPO GMP today signal ahead of listing.
Pine Labs IPO GMP today
Pine Labs IPO GMP today is ₹6.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Pine Labs share price was indicated at ₹227.5 apiece, which is 2.94% higher than the IPO price of ₹221.
According to the grey market activities from the past 12 sessions, the current GMP ( ₹6.5) indicates a downward trend. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹60, as noted by experts.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Pine Labs IPO details
The offering consists of a fresh issue of shares worth ₹2,080 crore, along with the sale of around 8.23 crore shares by both the founder and existing investors.
In the Offer for Sale (OFS), numerous entities, including Peak XV Partners, the London-based Actis, PayPal, Mastercard Asia/Pacific, Temasek through Macritchie Investments, Invesco, Madison India Capital, MW XO Digital Finance Fund Holdco, Lone Cascade LP, Sofina Ventures S.A., and Lokvir Kapoor, co-founder of Pine Labs, will dispose of their shares in the fintech firm.
The company plans to use the funds raised from the new share issuance for repaying debt, investing in IT assets, covering expenses for cloud infrastructure, undertaking technology development projects, and acquiring digital checkout points.
Moreover, the capital will be directed towards investments in its subsidiaries, including Qwikcilver Singapore, Pine Payment Solutions in Malaysia, and Pine Labs in the UAE to boost its global footprint.
Axis Capital, Morgan Stanley India Company, Citigroup Global Markets India, JP Morgan India, and Jefferies India are the lead managers overseeing the book, while KFin Technologies will act as the IPO registrar.
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