Fintech firm Pine Labs trims IPO size, sets price band at ₹210-221 a share

The number of shares in the offer for sale (OFS) was reduced from 14.78 crore shares to 8.23 crore shares

Fintech firm Pine Labs has reduced the size of its upcoming initial public offering (IPO) as existing shareholders opted to sell a smaller portion of their stake at the set price band, and the company decided to lower its net proceeds to manage debt in light of its current financial position, chief executive officer Amrish Rau said.

 

Earlier, the company was planning to raise ₹2,600 crore through the fresh issue. This has been pared down to ₹2,080 crore.

 

The number of shares in the OFS was reduced from 14.78 crore to 8.23 crore shares. The fintech firm has priced its IPO between ₹210 and ₹221 per share.

 

The IPO will open for subscription on November 7 and close on November 11. Bidding for anchor investors will be open on November 6. At the upper end of the price band, the company is valued at ₹25,377 crore.

 

The ₹3,900 crore IPO comprises a fresh issue of ₹2,080 crore and an offer for sale (OFS) of up to ₹1,819 crore.

 

“As far as the primary is concerned, we decided to reduce some of the components related to debt reduction. Our financial position improved dramatically. We felt that we don’t need to dilute and then pay off that debt, so we reduced the component which we are raising to pay off the debt,” Rau told Business Standard.

 

The company proposes to utilise the net proceeds towards repayment of certain borrowings, investment in certain of its subsidiaries, investment in IT assets, expenditure on cloud infrastructure, procurement of digital checkout points, and technology development initiatives.

 

The company will now allocate ₹532 crore towards debt repayment, down from ₹870 crore earlier. Rau indicated that this reduction aligns with the company’s intention to avoid dilution for debt servicing.

 

As far as the OFS is concerned, he clarified that the existing stakeholders in the company decided to not sell entirely in the IPO.

 

“What we saw was that some of our investors who were thinking about selling actually ended up not selling in this IPO process… It’s their call,” he added.

 

For the first quarter of financial year 2026 (Q1FY26), the company posted a net profit of ₹4.78 crore, as compared to a loss of ₹27.88 crore in Q1FY25.

 

Total income of the company grew to ₹653 crore in Q1FY26, as compared to ₹535 crore in Q1FY25, a 22 per cent growth.

 

Rau added that 15 per cent of the company’s growth was coming from international markets. The company is present in 20 countries, including Africa, South East Asia, Middle East, and the US.