Pine Labs ends debut trading day 3.9% up from listing price; market value tops $3.25B
Pine Labs' IPO comprised a fresh issue of Rs 2,080 crore and an offer for sale of up to 82.34 million shares by existing shareholders.
Pine Labs Ltd closed at Rs 251.50 on its first day of trading, ending the session 3.9% higher than its listing price. This gives the fintech firm a market valuation of Rs 28,856.19 crore or about $3.25 billion.
The stock had begun trading at Rs 242, the level at which it listed on both the BSE and NSE—a 9.5% premium to the IPO issue price of Rs 221.
Pine Labs had marketed the offer in the Rs 210–221 range during a three-day sale, seeking a post-issue valuation of Rs 24,217 crore to Rs 25,377 crore ($2.7 billion–2.8 billion).
The IPO comprised of a fresh issue of Rs 2,080 crore and an offer for sale (OFS) of up to 82.34 million shares by existing shareholders.
The offering saw strong investor interest, with bids placed for 24.09 crore shares against 9.79 crore on offer. The IPO was subscribed 2.46x times.
The listing served as a major exit opportunity for long-time investors, including Peak XV Partners (formerly Sequoia Capital India), Actis, Temasek’s MacRitchie Investments, PayPal, Mastercard, Madison India, and a few others. Founder Lokvir Kapoor also sold a portion of his stake.
Peak XV Partners sold a little over 2.3 crore shares through its vehicle Peak XV Partners Pine Investment Holdings, raising over Rs 500 crore in the OFS portion.
Institutional buyers also expressed demand during the three-day bidding session, subscribing four times their quota of 5.24 crore shares, with foreign institutions bidding for 8.69 crore shares and mutual funds for 10.85 crore shares. The retail segment held steady at 1.22x, with most applying at the cut-off price.
Participation from HNIs stayed weak at 0.30x, dragged down by large bidders over Rs 10 lakh, who subscribed just 0.24x times. Employees stood out, oversubscribing their small quota 7.35x times, a sign of strong internal conviction.
Meanwhile, Pine Labs has become the only company in India to hold all three RBI payment aggregator licences, after securing approvals for online (PA-O), physical (PA-P) and cross-border (PA-CB) operations.
Edited by Swetha Kannan