Peak XV-backed merchant platform Pine Labs Ltd. filed draft papers with the Securities and Exchange Board of India on Wednesday for its initial public offering.
The firm will be offering fresh equity worth Rs 2,600 crore, with an offer-for-sale component of up to 14.8 crore shares. Nine investor groups will be offloading stake through the OFS, with co-founder Lokvir Kapoor also participating, according to the draft red herring prospectus.
Peak XV, which is the largest shareholder in Pine Lab, will sell up to 3.9 crore shares, while Actis, Macritchie, PayPal and Mastercard look to offload 1.49 crore, 1.48 crore, 1.15 crore and 1 crore shares respectively. Kapoor himself is offering up to 37.6 lakh shares.
On the date of the filing of the DRHP, Peak XV held a 20.35% stake in the company, Macritchie held 7.1%, PayPal held 6%, while Actis and Mastercard held over 5% each on a fully diluted basis.
Of the Rs 2,600-crore fresh issue, Rs 870 crore will be used for debt repayment, Rs 760 crore will be used to fund investments in IT assets and Rs 60 crore will be deployed towards expansion of overseas presence through subsidiaries. This would leave Rs 910 crore to be used for general corporate purposes.
The firm may consider a pre-IPO placement worth up to Rs 520 crore, which will then end up reducing the fresh-issue component of the offer.
Axis Capital Ltd., Morgan Stanley India Co., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt. and Jefferies India Pvt. are the bankers for the IPO.
Pine Labs provides technology infrastructure to customers in India and international markets like Malaysia, UAE, Singapore, Australia, the US and Africa.
The fintech firm processed 397 crore transactions and payments of Rs 7.53 lakh crore in gross transaction value through its platforms in the nine months period ended December 2024.
Originally envisioned as an offline payments platform through points of sale terminals, Pine Labs has been diversifying into businesses like online payments, buy now pay later, invoice management and gifting solutions.
As of December 2024, Pine Labs claims to have 9.15 lakh merchants, 666 consumer brands and enterprises, and 164 financial institutions using its platforms.
The company's India listed peers include Paytm owner One 97 Communications Ltd. and Zaggle Prepaid Ocean Services Ltd. Overseas, it will compete with fintechs like Ayden, Shopify, Block and Marqeta.
Pine Labs 9M FY24 (Consolidated, Year-On-Year)
Revenue rose 23% to Rs 1,208 crore from Rs 982 crore.
Ebitda rose seven times to Rs 174 crore from Rs 24 crore.
Ebitda margin expanded to 14.4% from 2.4%.
Net profit rose to Rs 26 crore from net loss of Rs 152 crore.
The company saw its earnings before interest, taxes, depreciation and amortisation rise over seven-fold for the nine months ended December 2024, as revenue improved 23% on a year-on-year basis.
The bottom line also saw Pine Labs flip into a profit of Rs 26 crore from a loss of Rs 152 crore over the same period in the previous fiscal. It reported cash equivalents of Rs 93 crore as of December 2024.
No dividend on equity and preference shares has been paid by Pine Labs during the last three fiscals or the nine months period up to Dec. 31, 2024.
RECOMMENDED FOR YOU
Ceasefire To Tariffs: How A Modi-Trump Call Post India-Pakistan Clash May Have Sparked A Rift
Aug 09, 2025
Pine Labs Appoints Sameer Kamath As CFO Ahead Of IPO
Aug 07, 2025
Astrotalk Goes Global, With Stars Aligned For Rs 2,000 Crore Goal And IPO
Jul 30, 2025
SoftBank-Backed Lenskart Said To Plan To File $1 Billion
Jul 29, 2025
POPULAR