Fintech major Pine Labs IPO subscribed 2.5 times amid weak market sentiment

Pine Labs' ₹3,900-crore IPO saw 2.5 times subscription, driven by institutional investors, while the retail and HNI portions saw subdued demand amid valuation concerns

Fintech major Pine Labs’ initial public offering (IPO) drew a modest 2.5 times subscription, reflecting subdued investor appetite amid a string of weak market debuts.

 

The institutional investors’ portion was subscribed four times, while the retail quota saw 1.2 times bids. The high-net-worth individual (HNI) segment remained undersubscribed at 0.3 times. By the end of day two, the issue had drawn bids for less than two-thirds of its shares, as concerns over profitability and valuations weighed on sentiment.

 

How was the IPO structured and valued?

 

The Rs 3,900-crore IPO comprised a fresh issue worth Rs 2,080 crore and an offer for sale of Rs 1,820 crore. At the top end of the price band of Rs 221 per share, the company was valued at Rs 25,377 crore ($2.9 billion).

 

The merchant payments firm had trimmed both its IPO size and valuation ahead of the issue. Pine Labs was valued at about $5 billion during its last funding round in 2022. For FY25, it reported a net loss of Rs 145 crore on revenue of Rs 2,274 crore.

 

Who are Pine Labs’ key backers and business areas?

 

Backed by Peak XV Partners, Temasek, PayPal, and Mastercard, Pine Labs provides payment solutions, including point-of-sale terminals and merchant financing.