Pine Labs IPO trimmed as investors decide to sell less at price band: CEO

Indian financial technology firm Pine Labs trimmed the size of its initial public offering as existing shareholders wanted to sell a smaller portion of their holding at the set price band, CEO Amrish Rau told Reuters in an interview.

The company, which provides payment solutions such as point-of-sale terminals, slashed the portion offered by existing investors by 44% and new shares by 20% in its updated prospectus filed on Friday.

It set a price band of 210 to 221 rupees per share at a valuation of $2.9 billion at the higher end of the range, much lower than the valuation of $5 billion at its last fundraise in 2022. The three-day share sale will open on November 7 and close on November 11.

"We have priced (the offer) in such a way that we believe that we'll have the goodwill of the ecosystem," said Rau. "Because of that, some of the selling shareholders - where they had a higher threshold (to sell) - felt...they want to sell less of their stock."

Indian regulations let companies modify their IPO size to a certain extent after they file draft papers.

"Because our financial position [has] improved, there is no need to reduce the debt that we have...we felt the primary component can be slashed and dilution on equity...reduced," Rau said.

Existing investors such as Peak XV Partners, PayPal, Temasek and Mastercard now plan to sell a total of 82.3 million shares, down from the 147.8 million announced in its draft prospectus in June.

Additionally, the firm will now raise 20.8 billion rupees ($236.65 million) worth of shares as fresh issue of shares from the 26 billion rupees it sought to raise in June.

Pine Labs competes with firms such as Paytm, and Walmart -owned PhonePe. It turned profitable in the June 2026 quarter, reporting 47.86 million rupees in a profit and a revenue of 6.16 billion rupees.

Its IPO joins a wave of listings in a busy primary market, with share sales by other tech-driven firms such as Groww, Lenskart, and boAt also in the offing.