Fintech company Pine Labs, based in Noida, has received approval from the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO)
Indian fintech firm Pine Labs has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company, which was founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, has evolved into a full-stack merchant commerce platform, offering services such as point-of-sale terminals, online payment gateways, and other digital payment solutions.
The IPO will be managed by a consortium of global investment banks, including Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, and Jefferies India. These investment banks are acting as book-running lead managers for the IPO.
The proposed offering will comprise a fresh issue of shares worth up to Rs 2,600 crore ($304 million) and an offer for sale of as many as 14.78 crore shares by existing investors. Among the investors set to pare holdings are Peak XV Partners, Temasek's Macritchie Investments, Actis, PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, Lone Pine Capital's Lone Cascade, and Pine Labs co-founder Lokvir Kapoor.
Pine Labs plans to allocate capital to strengthen its cloud infrastructure, expand digital checkout solutions, enhance IT assets, and cover general corporate purposes. Proceeds from the new share sale will also be directed toward repaying or prepaying borrowings of about Rs 870 crore.
The IPO leaves room for a pre-IPO placement of up to Rs 520 crore, subject to board and regulatory approval. The company reported a net profit of Rs 44.97 crore in FY25, a significant improvement from a loss of Rs 182.31 crore in the previous year. Expenses for FY25 increased only 3.3% to Rs 1,676.8 crore.
In the first nine months of FY25, Pine Labs recorded a profit of Rs 26.1 crore, a significant improvement from a loss of Rs 151.6 crore in the same period the previous year. Total income for FY25 rose 25.5% year-on-year to Rs 1,735.1 crore.
Pine Labs also plans to invest in its international subsidiaries - Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE. No official timelines for the IPO have been announced, but CEO Amrish Rau has indicated that the company is targeting a listing in the second half of 2025.
The consortium managing the IPO as book-running lead managers includes Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies. Peak XV alone plans to offload up to 39 million shares, trimming its 20.35% ownership by about 3.6%. Actis and Temasek are each expected to reduce their stakes by roughly 1.4%.
As Pine Labs prepares for its public debut, it continues to position itself as a key player in the digital payments landscape in India and beyond. The company's IPO is expected to attract significant interest from both domestic and international investors.
Update:
Pine Labs filed its draft red herring prospectus (DRHP) in late June and secured SEBI's observations on September 11. The firm has not yet announced any official timelines for the IPO, but CEO Amrish Rau has indicated that the company is targeting a listing in the second half of 2025.
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