Pine Labs Sets IPO Price Band at INR 210-221, Plans INR 3,900 Cr Fundraising

Fintech firm Pine Labs has announced its Initial Public Offering (IPO) with a price band set between INR 210 and INR 221 per share. The IPO is scheduled to open for subscription on Friday, November 7, and will close on November 11, with shares expected to list on November 14. Anchor investors will participate on November 6.

The total size of the IPO is estimated to be around INR 3,900 crore (approximately $439 million). This offering comprises a fresh issue of up to INR 2,080 crore and an offer for sale (OFS) of up to 8.23 crore shares. Notably, the company reduced the overall size of the IPO from its earlier filings, with major investors like Peak XV Partners Pine Investment Holdings and co-founder Lokvir Kapoor scaling back their OFS portions.

The IPO proceeds will be utilized for significant corporate objectives. Approximately INR 532 crore is earmarked for repaying or prepaying existing borrowings. Another INR 60 crore will be invested in overseas subsidiaries to fuel international expansion. A substantial INR 760 crore is allocated for strengthening IT assets, cloud infrastructure, procuring digital checkout points, and driving technology development.

Financially, Pine Labs reported a net profit of INR 4.8 crore in the first quarter of the current fiscal year (Q1 FY26), a turnaround from a loss of INR 27.9 crore in the same quarter last year. This profit was aided by a tax credit of INR 9.6 crore, as the company recorded a pre-tax loss of INR 4.8 crore. Revenue from operations saw a healthy increase of nearly 18%, reaching INR 615.9 crore in Q1 FY26.

Impact: This IPO announcement is significant for the Indian stock market as it introduces a major fintech player to public trading. The pricing and subscription levels will provide insights into investor sentiment towards the Indian fintech sector. The company's future performance post-listing will depend on its ability to leverage its technology and expand its market reach. Investors will closely watch its financial health and growth prospects. Rating: 7/10.

Difficult terms: * **Initial Public Offering (IPO)**: The first time a private company offers its shares to the public to raise capital. * **Price Band**: A range within which the shares of a company will be offered during an IPO. * **Fresh Issue**: When a company issues new shares to raise capital. * **Offer for Sale (OFS)**: When existing shareholders sell their shares to new investors. * **Anchor Bidding**: A process where institutional investors commit to buying shares before the IPO opens to the public. * **Diluted Earnings Per Share (EPS)**: The earnings per share after considering all potential claims on earnings, such as convertible bonds or stock options. * **Price to Earnings Ratio (P/E Ratio)**: A valuation metric that relates a company's share price to its earnings per share. A higher P/E ratio may indicate higher future growth expectations. * **DRHP (Draft Red Herring Prospectus)**: A preliminary document filed with the regulator before an IPO, containing details about the company and the offering. * **Tax Credit**: An amount that can be subtracted from a company's tax liability. * **Subsidiaries**: Companies controlled by a parent company.