Pine Labs, a fintech company, is set to enter the capital market today with a ₹3,900-crore initial public offering (IPO), priced between ₹210 and ₹221 per share. The IPO will close on November 11, and the minimum bidding lot consists of 67 shares.
IPO Details
The IPO includes a fresh issue of shares valued at ₹2,080 crore alongside an Offer for Sale (OFS) of over 8.23 crore equity shares, estimated at ₹1,819.9 crore at the top price. Existing investors such as Peak XV Partners, 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 co-founder Lokvir Kapoor are participating in the OFS.
The share allocation is structured with up to 75% designated for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and no more than 10% for retail investors. Additionally, shares worth ₹2.5 crore have been reserved for employees, and a discount of ₹21 per share will be offered to allottees within this category.
Anchor Investors
Pine Labs raised ₹1,754 crore from 71 anchor investors, including notable firms such as Franklin Templeton, Nomura, and Morgan Stanley Asia Singapore Pte Ltd. Domestic participation includes mutual funds from SBI, Aditya Birla Sun Life, HSBC, Tata, Edelweiss, and ICICI Prudential Life Insurance Company. The company allocated 7.93 crore equity shares to these investors at ₹221 per share.
Objective of IPO
The proceeds from the fresh share issuance will be used to repay debt, invest in IT infrastructure, cloud services, technology development, and procure digital checkout points. Further, funds will be allocated for investments in subsidiaries operating in Singapore, Malaysia, and the UAE to expand their international footprint.
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 serving as the book-running lead managers for this IPO.
About Pine Labs
Pine Labs Ltd operates as a merchant commerce platform that provides integrated solutions for digital payments, card issuing, and fintech services. The company supports merchants, brands, and financial institutions through a cloud-based infrastructure, facilitating seamless transactions both online and in-store.
Pine Labs manages two main platforms: the Digital Infrastructure and Transaction Platform (DITP), which focuses on payment acceptance and value-added services, and the Issuing and Acquiring Platform (IAP), which deals with card issuance and processing. As of June 30, 2025, Pine Labs serviced 990,000 merchants, 716 enterprises, and 177 financial institutions, processing a gross transaction value of ₹11.42 trillion through 5.68 billion transactions, establishing itself as a prominent digital payment enabler in India.
Backed by global investors like Temasek and Mastercard, Pine Labs is recognized as the largest issuer of closed and semi-closed gift cards in India and ranks among the top five in-store digital payment providers. The company serves diverse sectors, including retail, healthcare, and financial services, and maintains longstanding relationships with significant brands such as Croma and HDFC Bank.
Broker’s Views
AngelOne comments that the company’s valuation at the upper price band cannot be accurately compared on a P/E basis due to its current loss-making status. On an EV/EBITDA basis, Pine Labs trades at a premium to its peers, prompting a “Neutral” recommendation for medium to long-term investors.
SBI Securities highlights that at the upper price band, the stock is valued at multiples of 8.0x EV/Sales, 82.8x EV/EBITDA, and 50.7x EV/Adj EBITDA. The company’s extensive network and strong relationships with key clients position it well to leverage a projected market opportunity of approximately ₹276 trillion by FY29. With reported healthy revenue and EBITDA growth between FY23 and FY25, plus a debt repayment of ₹532 crore from IPO proceeds, SBI Securities recommends a “SUBSCRIBE” rating for long-term investors.
Published on November 7, 2025.
