Another new-age company Pine Labs is hitting the capital market today. The fintech firm ’s ₹3,900-crore initial public offering comes out in a price band of ₹210 to ₹221 per share. The IPO will conclude on November 11 and the lot size is 67 shares.
IPO details
The IPO comprises a fresh issue of shares worth ₹2,080 crore and an Offer for Sale (OFS) of over 8.23 crore equity shares, valued at ₹1,819.9 crore at the upper end, by existing shareholders such as Peak XV Partners, 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 Pine Labs co-founder Lokvir Kapoor.
The company has reserved up to 75 per cent of the issue for qualified institutional buyers (QIB), 15 per cent for non-institutional Institutional Investors (NII), and not more than 10 per cent for retail investors. It has reserved shares worth ₹2.5 crore for its employees and a discount of ₹21 a share is being offered to allottees under the quota..
Anchor investors
As part of the IPO, Pine Labs on Thursday raised ₹1,754 crore from 71 anchor investors, including Franklin Templeton, Nomura, Morgan Stanley Asia Singapore Pte Ltd, Amundi Funds New Silk Road, Massachusetts Institute of Technology, BNP Paribas and Eastspring Investments, according to a circular uploaded on BSE’s website. On the domestic front, SBI Mutual Fund (MF), Aditya Birla Sun Life MF, HSBC MF, Tata MF, Edelweiss MF and ICICI Prudential Life Insurance Company participated in the anchor book. As per the circular, the company finalised the allocation of 7.93 crore equity shares to anchor investors at ₹221 per share.
Objective of IPO
Proceeds from the fresh issue will be used by the company to repay debt, investment in IT assets, expenditure towards cloud infrastructure, technology development initiatives and procurement of digital checkout points. The company will use funds for investment in its subsidiaries, such as Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE, for expanding the presence outside the country.
Axis Capital Ltd, Morgan Stanley India Company Private Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited and Jefferies India Private Limited are the book-running lead managers to the offer.
About Pine Labs
Pine Labs Ltd is a merchant commerce platform providing omni-channel digital payment, card issuing, and fintech solutions that connect merchants, brands, and financial institutions through a unified, cloud-based infrastructure enabling seamless in-store and online transactions.
The company operates two integrated platforms, the Digital Infrastructure and Transaction Platform (DITP) for payment acceptance, EMI and affordability services, and value-added merchant solutions; and the Issuing and Acquiring Platform (IAP) for prepaid, gift, and loyalty card issuance and processing. As of June 30, 2025, Pine Labs served 9.9 lakh merchants, 716 enterprises, and 177 financial institutions, processing ₹11.42 trillion in gross transaction value across 5.68 billion transactions, making it one of India’s leading digital payment enablers.
Backed by global investors such as Temasek, Peak XV Partners, PayPal, Actis, and Mastercard, Pine Labs is the largest issuer of closed and semi-closed loop gift cards in India and among the top five in-store digital payment players, supported by growing profitability and expanding presence across India and Southeast Asia.
The company’s customer base spans a wide range of sectors, including retail, e-commerce, lifestyle, consumer electronics, healthcare, travel, hospitality, and financial services, as well as public sector clients such as municipal bodies and traffic departments. It has long-standing relationships with several large brands and institutions, including Croma and HDFC Bank, with some partnerships extending over a decade.
Broker’s views:
AngelOne
At the upper price band of ₹221 per share, the company’s valuation cannot be meaningfully compared on a P/E basis as it remains loss-making at the net level and on EV/EBITDA it is trading at a premium to its listed peers, leading to valuation discomfort despite strong sector and company outlook. Hence, we recommend a “Neutral” rating for investors with a medium to long-term horizon.
SBI Securities
At the upper price band, the stock is trading at EV/Sales, EV/EBITDA and EV/Adj EBITDA multiple of 8.0x, 82.8x and 50.7x, respectively, based on post-issue capital. Pine Labs operates through a network of 9.8 lakh merchants, 716 consumer brands & enterprises and 177 financial institutions in India, Malaysia, Singapore, UAE, Australia, the US and Africa as of June 2025. The company has built long-lasting relationships with marquee clients such as HDFC Bank, Croma, LG Electronics, etc and isready to capitalize on the ~₹276 trillion market opportunity by FY29P.
Between FY23-FY25, it has delivered a healthy Revenue/EBITDA CAGR of 19.3%/538.6% respectively. Furthermore, the company plans to repay debt of ₹532 crore from the IPO proceeds. The company’s operations have witnessed a turnaround with robust growth in EBITDA and adj EBITDA during the FY23-FY25 period. On the back of a robust business model, going forward, we believe the company is well placed to deliver profitable growth and hence, we recommend investors to SUBSCRIBE to the issue with long-term investment horizon.