Pine Labs IPO: stock opens at Rs 242, up 9.5% on listing day
The IPO comprises a fresh issue of Rs 2,080 crore and an offer for sale (OFS) of up to 82.34 million shares by existing shareholders.
Pine Labs made a strong debut on Mumbai's stock market on Friday, opening well above its issue price after the digital payments firm's highly tracked initial public offering (IPO).
The stock began trading at Rs 242 on the BSE and NSE, marking a 9.5% gain over its issue price of Rs 221. The merchant payments and digital commerce software firm had priced the IPO between Rs 210 and Rs 221 per share.
The offering saw strong investor interest, with bids placed for 24.09 crore against 9.79 crore on offer, taking the IPO to 2.46 times subscription. Institutional buyers drove the demand, subscribing four times their 5.24-crore quota, with foreign institutions bidding for 8.69 crore shares and mutual funds for 10.85 crore. Retail 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. Employees stoodout, oversubscribing their small quota 7.35x, a sign of strong internal conviction.
The IPO comprises a fresh issue of Rs 2,080 crore and an offer for sale (OFS) of up to 82.34 million shares by existing shareholders.
Pine Labs is seeking a post-issue valuation in the range of Rs 24,217 crore ($2.7 billion) to Rs 25,377 crore ($2.8 billion).
The issue is being managed by Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies, with KFin Technologies serving as registrar. The anchor investor round will take place on November 6, a day before the issue opens to the public.
The IPO represents 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 will also sell a portion of his stake.