Pine Labs files DRHP with Sebi for IPO; to raise ₹2,600 cr via fresh issue

The company plans a pre-IPO placement of shares aggregating to Rs 520 crore. If the pre-IPO placement is completed, the fresh issue size will be reduced

Temasek and Peak XV Partners-backed Pine Labs has filed preliminary pape₹ with capital markets regulator Sebi to mobilise funds through an initial public offering (IPO).

The IPO is a combination of fresh issuance of equity shares worth ₹2,600 crore and an offer for sale (OFS) of more than 14.78 crore shares by investor selling shareholders, according to the draft red herring prospectus (DRHP) filed on Wednesday.

Under the OFS, Peak XV Partners, London-based Actis, PayPal, Mastercard Asia/Pacific, Temasek through Macritchie Investments, Invesco, Madison India Capital, MW XO Digital Finance Fund Holdco, Lone Cascade LP, and Pine Labs co-founder Lokvir Kapoor will be divesting their shares in the fintech firm.

The company plans a pre-IPO placement of shares aggregating to ₹520 crore. If the pre-IPO placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issue to the tune of ₹870 crore will be used by the company to repay debt and ₹760 crore will be used for investment in IT assets, expenditure towards cloud infrastructure, technology development initiatives and procurement of digital checkout points.

The company will use funds worth ₹60 crore for investment in its subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE for expanding the presence outside the country, and the balance for general corporate purposes, and unidentified inorganic acquisitions.

Noida-based Pine Labs is a technology company focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.

For the fiscal ended December 31, 2024, it has processed paytments worth ₹7,53,105 crore in gross transaction value and 3.97 billion transactions through its platforms.

The company had more than 9.15 lakh merchants, 666 consumer brands and enterprises, and 164 financial institutions, who used its platforms to enable transactions quickly, securely and easily manage their business.

According to the Redseer report, Pine Labs is one of the top five in-store digital platforms, and a prominent Bharat Bill Payment System transactions processing solutions provider in FY24.

The company competes with the likes of Paytm, Razorpay, Infibeam, PayU Payments, PhonePe in the domestic market and Adyen, Shopify and Block in the overseas markets.

For the fiscal ended December 31, 2024, the company reported a revenue from operations at ₹1,208.2 crore and profit after tax at ₹26.14 crore.

The shares of the company are proposed to be listed on the BSE and NSE.

Axis Capital, Morgan Stanley India Company, Citigroup Global Markets India, JP Morgan India, Jefferies India are the book running lead managers while KFin Technologies is the registrar for the IPO.