Pine Labs files draft papers with SEBI to raise funds via IPO, plans ₹2,600 crore fresh issue

Pine Labs IPO: Merchant payments and lending platform Pine Labs Ltd has filed preliminary papers with the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering (IPO).

The initial share sale consists of new equity shares worth ₹2,600 crore and an offer for sale (OFS) component of 147,822,225 shares.

Under the OFS, Peak XV Partners Pine Investment Holdings, PayPal, Macritchie Investments, Actis Pine Labs Investment Holdings, Mastercard Asia/Pacific, AIM Investment Funds, MW XO Digital Finance Fund Holdco, Lone Cascade, L.P., MW XO Digital Finance Fund Holdco and Lokvir Kapoor will be offloading their stake.

Axis Capital, Citigroup Global Markets India, Morgan Stanley India Company, Jefferies India, and JP Morgan are the issue's book-running lead managers, while KFin Technologies is the registrar.

Pine Labs IPO: Objectives

• Repayment of certain borrowings availed of by the firm and its subsidiaries
• Investment in certain subsidiaries for expanding presence outside India
• Investment in information technology assets, procurement of digital check-out points, and expenditure towards cloud infrastructure and technology development initiatives
• Corporate general purposes and unidentified inorganic acquisitions

About Pine Labs

Pine Labs offers digital payments and issuing solutions for merchants, financial institutions, consumer brands and enterprises. Its advanced technology infrastructure helps to boost the digitisation journey in India and international markets, including the UAE, Malaysia, Australia, Singapore, Africa and the United States.

"We processed payments of ₹7,531.05 billion in gross transaction value and 3.97 billion transactions through our platforms in the nine-month period ending December 31, 2024. As of December 31, 2024, we had 915,731 merchants, 666 consumer brands and enterprises, and 164 financial institutions who used our platforms to enable transactions quickly, securely and easily manage their business," the company said in its DRHP.

For the nine-month period ended December 31, 2024, the company’s revenue from operations and profit after tax stood at ₹1,208.16 crore and ₹26.14 crore, respectively.