Pine Labs IPO: Analysts divided on prospects; should you subscribe?

Pine Labs aims to raise ₹3,899.1 crore from the IPO, comprising a fresh issue of 94.1 million shares amounting to ₹2,080 crore and OFS of 82.3 million shares amounting to ₹1,819.9 crore

Pine Labs IPO: Pine Labs, a merchant commerce platform, is set to float its maiden public issue (IPO) on Friday, November 7, 2025. The company aims to raise ₹3,899.1 crore from the initial public offering (IPO), comprising a fresh issue of 94.1 million equity shares amounting to ₹2,080 crore and an offer for sale (OFS) of 82.3 million equity shares amounting to ₹1,819.9 crore. 

 

Under the OFS, investors Peak XV Partners Pine Investment Holdings, Actis Pine Labs Investment Holdings, Macritchie Investments, PayPal, AIM Investment Funds, Mastercard Asia/Pacific, Madison India Opportunities IV, Lone Cascade LP, Lokvir Kapoor, and Sofina Ventures SA will sell a part of their holdings. 

 

According to the red herring prospectus (RHP), the company has reserved at least 75 per cent of the issue for qualified institutional buyers (QIBs), not more than 35 per cent for retail investors and not more than 15 per cent for non-institutional investors (NIIs).

Pine Labs IPO GMP

On Thursday, November 6, 2025, the unlisted shares of Pine Labs were trading at ₹233, up ₹12 or 5.5 per cent compared to the issue price of ₹221 per share, according to sources tracking unofficial markets.  ALSO READ | Emmvee Photovoltaic Power IPO opens on Nov 11; here's all you need to know

Pine Labs IPO: Here's what the brokerages suggest

SBI Securities - Subscribe - long term

According to SBI Securities, Pine Labs has built long-lasting relationships with marquee clients like HDFC Bank, Croma, LG Electronics, etc and is ready to capitalise on the ₹276 trillion market opportunity by FY29P.

 

Between FY23-FY25, it has delivered a healthy Revenue/Ebitda CAGR of 19.3 per cent/538.6 per cent, respectively. Furthermore, the company plans to repay debt of ₹532 crore through the proceeds from the IPO. The company's operations have witnessed a turnaround with robust growth in Ebitda and adjusted Ebitda during the FY23-FY25 period. 

 

"On the back of a robust business model, going forward, we believe the company is well placed to deliver profitable growth and hence, we recommend investors to 'Subscribe' to the issue with a long-term investment horizon," the brokerage said.

Arihant Capital - Avoid

According to analysts at Arihant Capital, while Pine Labs stands out as one of India's most established full-stack fintech infrastructure platforms, its current fundamentals and valuations leave limited room for near-term benefit. 

 

The company has demonstrated strong operating metrics, revenue grew 28.5 per cent year-on-year (Y-o-Y) in FY25 to ₹2,274.3 crore, and adjusted Ebitda margin improved to 15.7 per cent. However, it remains loss-making at the profit after tax (PAT) level, with a net loss of ₹145.5 crore in FY25 and a PAT margin of -6.4 per cent, which shows sustained pressure from high employee, technology, and acquisition integration costs. 

 

At the upper band of ₹221, the issue is valued at an EV/Ebitda of 56.55x, based on an Ebitda of ₹3.10 per share. The brokerage has assigned a 'Avoid' rating to the issue.   ALSO READ | Here's how to check Lenskart IPO allotment status today, latest GMP

Here are the key details of the Pine Labs IPO:

The three-day subscription window to bid for the Pine Labs IPO will close on Tuesday, November 11, 2025. The allotment of shares is expected to be finalised on Wednesday, November 12, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Thursday, November 13, 2025. 

 

Shares of Pine Labs will make their debut on the exchanges, NSE and BSE, tentatively on Friday, November 14, 2025. 

 

The company has set the price band in the range of ₹210 to ₹221, with a lot size of 67 shares. A retail investor would require a minimum investment of ₹14,807 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar. Axis Capital, Morgan Stanley India Company, Citigroup Global Markets India, JP Morgan India, and Jefferies India are the book-running lead managers.

 

As per the RHP, the company plans to utilise ₹532 crore from the net fresh issue proceeds for repayment or prepayment of certain borrowings of the company and its subsidiaries. Around ₹60 crore will be invested in subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions (Malaysia), and Pine Labs UAE to support international expansion. Additionally, ₹760 crore will be used for investment in IT assets, cloud infrastructure, technology development, and procurement of DCPs. The remaining funds will be used for general corporate purposes.