ANKUR TYAGI
Pine Labs Ltd, a leading Indian digital payments company supported by Mastercard and PayPal, is gearing up for an initial public offering (IPO) in October, aiming to raise around $700 million. This marks a revision from its original target of $1 billion, following adjustments in the stake offered by existing investors.
The fintech firm has already kicked off roadshows to attract institutional and retail investors, highlighting the rapid growth of the digital payments sector, fueled by government digitization initiatives.
IPO Structure
The planned IPO will include:
- Fresh issue of shares worth ₹26 billion (~$295 million)
- Sale of 147.8 million shares by the founder and early investors, including Peak XV Partners, Pine Investment Holdings, and Invesco Investment Funds
While the IPO details such as the final timing and size are still under discussion, Pine Labs submitted its draft prospectus to the Securities and Exchange Board of India (SEBI) on June 25 and received approval earlier this month.
Advisors for the IPO include Axis Bank, along with the Indian branches of Morgan Stanley, Citigroup, JPMorgan Chase, and Jefferies Financial Group.
About Pine Labs
Founded as a provider of point-of-sale (POS) solutions, Pine Labs operates in India and international markets including Singapore, Malaysia, and the UAE. For the fiscal year ending March 2024, the company reported a revenue of ₹13.4 billion but posted a loss of ₹1.9 billion, reflecting ongoing investments in expansion and technology.
Market Context
The IPO comes at a time when the fintech sector in India is booming, supported by a shift toward digital payments, increased government initiatives, and a growing number of primary market listings. Experts say the Pine Labs offering could attract strong interest from investors looking to gain exposure to a leading payments platform with global backing.
A Pine Labs spokesperson did not respond to requests for comments, according to Bloomberg reports.
Abhishek Sinha
