The IPO rush in 2025 continues. Pine Labs IPO is the next one in focus. The issue will open for subscription between November 7 – November 11. All eyes are on whether the issue is a subscription at current levels.
Here is a quick look at select highlights from the company’s RHP.
Pine Labs IPO: Rising ESOP cost in Q1FY26
Interestingly, Pine Labs’ ESOP cost surged in Q1 FY26 significantly compared to Q1FY25. The total ESOP cost incurred by the company was Rs 180.08 crore during the Financial Year 2025-26 and the subsequent three months (April 1, 2024, to June 30, 2025).
Just to give a heads up, the employee share-based payment expense represents the cost recorded by the company in the profit and loss statement related to stock options.
| Period | Employee Share-Based Payment Expense (Rs. Cr.) |
| FY25 | Rs 114.79 crore |
| Q1 FY26 | Rs 66.04 crore |
| Q1 FY25 | Rs 29.51 crore |
The employee benefits expense increased significantly in Q1FY26 to Rs 66.05 crore, compared to Rs 29.51 crore in the same quarter a year ago, due to several ESOP activities like settlement of cash-settled awards, ESOP modification costs, and migration costs.
Pine Labs IPO: What triggered higher ESOP expense
The increase in ESOP expense was mainly on the back of the settlement of cash-settled awards. The company recorded Rs 9.33 crore as employee share option expense on settlement/remeasurement of cash-settled awards during the period up to June 6, 2025, as per the RHP. The company modified the exercise price and vesting period for specific equity-settled grants led to additional costs of Rs 12.10 crore in Q1FY26.
Pine Labs IPO: Impact of employees exercising stock options
Apart from the expense, the company received cash from employees exercising their options in Pine Labs Singapore and the current company (Pine Labs Ltd.).
A significant allotment occurred in October 2025, covering options exercised in the recent period:
• Date of allotment: October 9, 2025
• Number of shares allotted: 2.75 crore equity shares
• Nature of consideration: Cash (Exercise of options pursuant to ESOP 2025)
• Time period covered: These were options exercised during the period from July 1, 2025, till the date of the RHP (October 31, 2025)
• Exercise price range: The exercise prices for these allotted shares ranged from Rs 5.40 to Rs 155.96 per equity share.
As of the date of the RHP, a total of 8.71 crore stock options have been granted under ESOP 2025, and 2.75 crore equity shares have been exercised.
The main purpose of ESOPs is to utilise this as a strategy to incentive and reward mechanisms to retain key talent and high-performing employees.
All in all, the company is strategically utilising its ESOP as a key mechanism for talent retention, as evidenced by the substantial Rs 180.08 crore cost incurred across FY25 and Q1 FY26. This expense, which saw a sharp rise due to cash-settled awards and option modifications, confirms a major investment in its human capital.
Pine Labs IPO: Issue details
Pine Labs will raise Rs 3,899.91 crores through a combination of 9.41 crore fresh shares, aggregating to Rs 2,080 crores, and an offer for sale of 8.23 crore shares amounting to Rs 1,819.91 crores. The allotment of shares is estimated to be finalised on November 12.
The listing of shares on BSE and NSE is expected to be on November 14, as per the tentative schedule.