The Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) of fintech firm Pine Labs, paving the way for its market debut. The company plans to raise Rs 2,600 crore through fresh equity.
Pine Labs had submitted its Draft Red Herring Prospectus (DRHP) to SEBI on June 26, marking a key step toward its listing on Indian stock exchanges. According to the DRHP, around Rs 870 crore from the fresh issue will go toward repayment or prepayment of borrowings.
The remaining funds will be used for investments in subsidiaries including Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE. Additional allocations will be made for cloud infrastructure upgrades, digital checkout solutions, IT assets, and other corporate needs.
The company has also kept the option open for a pre-IPO placement of up to Rs 520 crore, subject to regulatory and board approval.
The IPO is being managed by a consortium of leading investment banks such as Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, and Jefferies India, acting as book-running lead managers. A portion of the offer will also include an Offer for Sale (OFS) by existing investors.
Among the major participants, Peak XV Partners is expected to sell up to 39 million shares, reducing its 20.35% stake by 3.6%. Actis and Temasek will each divest around 14.8 to 14.9 million shares, trimming their holdings by about 1.4%. Other key shareholders include PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, and Lone Pine Capital’s Lone Cascade.
The IPO comes at a time when Pine Labs has turned profitable for the first time. The payments company reported a net profit of Rs 44.97 crore in FY25, a sharp turnaround from a loss of Rs 182.31 crore in FY24. Consolidated financial results show the company’s total income grew 25.5% to Rs 1,735.1 crore in FY25 from Rs 1,382.6 crore a year earlier. Meanwhile, expenses rose modestly by 3.3% to Rs 1,676.8 crore compared with Rs 1,622.8 crore in FY24.
With profitability achieved and a strong growth trajectory, the IPO is expected to attract significant attention from investors looking at India’s expanding digital payments sector.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
