LIVE: Pine Labs enters Day 3, GMP slips to 2% – What’s the big concern now?

Pine Labs operates business in two core segments, both focused on providing technology-driven commerce solutions: the Digital Infrastructure & Transaction Platform and the Issuing & Acquiring Platform.

The Digital Infrastructure and Transaction Platform provides comprehensive payment solutions for merchants, catering to both in-store and online operations.

The Issuing & Acquiring Platform is dedicated to prepaid card issuance, processing, distribution, and unified acquiring solutions

Pine Labs engaged in strategic acquisitions to enhance its competitive position and expand its services in the digital payments and fintech infrastructure space. In 2021, the company acquired Mosambee (SME Payment solutions), Qfix (workflow management for small merchants), and Setu (API-led fintech infrastructure and Card-on-File transaction stack).

The company acquired Saluto (Loyalty and rewards management platform) in 2022 and Credit+ (enabling full-stack issuing and acquiring solutions for credit, debit, prepaid, and digital shifts) in 2023.

Pine Labs supports 177 financial institutions as of June 2025, providing end-to-end issuing, acquiring, and transaction processing across 16 countries. The company’s cloud-native solutions are used to manage faster checkouts, advanced risk models, and improved collections. Also, affordability solutions help drive loan volumes, secure funding, and strengthen customer engagement and retention.

Pine Labs enables brands and enterprises to issue and manage both physical and digital prepaid instruments. These are utilised for various purposes, including gifting, promotions, cashback, rewards, loyalty, refunds, and employee and channel incentives. As of Q1 FY26, the company had cumulatively issued over 3.67 billion prepaid cards for consumer brands and enterprises. These offerings are available across India, the U.S., Australia, and Southeast Asia.

Pine Labs offers multiple services for its constituents, with merchants forming the core of the company’s business. The company provides seamless integration across Digital Infrastructure and Issuing & Acquiring Platform, facilitating rapid digitisation of the informal retail sector. It provides Value-Added Services (VAS), which include dynamic currency conversion (DCC), payment plan processing, and merchant reconciliation. It also includes workflow management for small merchants and unified acquiring solutions

Pine Labs served 988,304 merchants as of June 2025. In FY25, the company processed Rs 11.4 lakh crore in Gross Transaction Value (GTV) across 5.68 billion transactions. Pine Labs’ ecosystem connects merchants, consumer brands and enterprises, and financial institutions.

At the upper band of the offer price, the fully diluted market capitalisation is calculated to be Rs 25,376.6 crore. The company is valued at a Price-to-Earnings (P/E) ratio of 50.5x based on estimated FY25 earnings. This P/E calculation uses the estimated basic earnings per share (EPS) for FY25, which is Rs 53.76.

However, the brokerag finds the valuation justified by the management’s expectation of drivable substantial growth and strengthened competitive positioning in the digital payments and fintech infrastructure space over the medium to long term, recommending a ‘Subscribe- Long Term’ rating for the issue.

Pine Labs processed a gross transaction value (GTV) of Rs 11,424.97 billion and handled 5.68 billion transactions during FY25. The company’s merchant base crossed 988,000, supported by 716 consumer brands and 177 financial institutions as of June 2025.

The Pine Labs IPO closes today. The GMP trend has absolutely flattened out. THis indicates that the investors expect listing closer to the issue price.

However, readers must keep in mind the GMP is an unofficial indicator of sentiment. The actual listing price could be vastly different.

The price band for the issue was fixed between Rs 210 and Rs 221 per share. For retail investors, the minimum lot size stood at 67 shares, translating to an entry cost of Rs 14,807 at the upper end.

Small non-institutional investors (sNIIs) were required to bid for 14 lots (938 shares worth Rs 2.07 lakh), while big NIIs (bNIIs) had a minimum size of 68 lots (4,556 shares worth Rs 10.06 lakh).

The IPO opened for public subscription on November 7, and closed on November 11. The share allotment is expected to be finalized on November 12, with listing on BSE and NSE scheduled for November 14.