Pine Labs Ltd., a digital payments firm in India, is set to raise up to $700 million through an initial public offering (IPO) planned for the second half of October, according to sources familiar with the matter.
The company, backed by major investors including Mastercard Inc. and PayPal Holdings Inc., has initiated roadshows for the upcoming share sale. The IPO size has been reduced from an initial target of $1 billion after existing investors diminished their offer-for-sale shares, the sources noted, speaking on the condition of anonymity due to the confidential nature of the information.
This IPO is being launched amid a robust surge in the financial technology sector, driven by the government’s push for digitization, and a rise in primary market listings. The offering will consist of a fresh issue of shares valued at 26 billion rupees (approximately $295 million), alongside the sale of 147.8 million shares by the founder and various investors, including Peak XV Partners, Pine Investment Holdings, and Invesco Investment Funds.
Discussions are still ongoing, and details such as the timing and size of the IPO may be subject to change, the sources indicated. A representative for Pine Labs did not provide comments when approached.
Pine Labs specializes in payment solutions, providing point-of-sale terminals and operating not only in India but also in international markets like Singapore, Malaysia, and the UAE. In the fiscal year ending March 2024, the company recorded a loss of 1.9 billion rupees with revenues amounting to 13.4 billion rupees, as per their filing.
The company submitted a draft prospectus to India’s market regulator on June 25 and received approval earlier this month. Leading the advisory process for the IPO are Axis Bank Ltd., along with the local branches of Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co., and Jefferies Financial Group Inc.