The IPO tsunami continues with new issues hitting the street practically every day. This current wave of IPOs has seen a huge list of companies catering to internet-based economies and fintech majors trying their luck in the primary market. The latest one is Pine Labs offering fintech solutions from in-store POS terminals and online payments to gift cards, wallets and lending.
The 3,899.91 crore issue is a combination of fresh issue and offer for sale. It aims to use the issue proceeds for a variety of purposes, from expansion to repayment of loans.
Here is a detailed analysis of the company’s financials and issue structure:
Pine Labs IPO: Issue details
Pine Labs IPO will open for subscription on November 7. After its three-day bidding period, the issue will close its bidding on November 11. The company has fixed the price band between Rs 210-221 per share, with each share having a face value of Rs 1.
Furthermore, investors can bid for a minimum of 67 shares and in multiples of 67 thereafter.
At the upper end of the price band, the IPO is aiming to raise about Rs 3,900 crore.
This mainboard IPO includes a fresh share sale worth Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares by existing investors. These include Peak XV Partners, PayPal, and Mastercard.
Talking of the IPO structure, the company has reserved 75% of the shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
In addition to this, shares worth Rs 25 million have been set aside for eligible employees, who will get a discount of Rs 21 per share.
The anchor investor allotment will take place on November 6, a day before the issue opens.
After the completion of the bidding process, the basis of allotment will be finalised on November 12. Thereafter, the refunds and demat credit are likely to be processed on November 13.
Thereafter, shares of the company are scheduled to list on the NSE and BSE on November 14.
Pine Labs IPO objectives
A look at the key objectives of the Pine Labs IPO – The company aims to use the proceeds from the fresh issue amounting to Rs 2,080 crore for the following objectives-
-Rs 532 crore would be used for repayment/prepayment of loans
-Pine Labs will invest Rs 60 crore in its subsidiaries, Qwikcilver Singapore, Pine Payment Solutions, Malaysia and Pine Labs UAE for expanding our presence outside India
-The company aims to invest Rs 760 crore for IT assets, expenditure towards cloud infrastructure, technology development initiatives and procurement of DCPs
The proceeds from OFS would go directly to the stakeholders, diluting stake.
Pine Labs IPO: Details of current shareholders
The company has big investors like Peak XV Partners, PayPal, Mastercad, Alpha Wave, and many others. The 25 major shareholders collectively hold 85.33 crore equity shares, representing 80% of the pre-offer paid-up equity shares.
Here is a detailed list of current shareholders with more than 2% stake in the company.
| Sr. No. | Name of the Shareholder | No. of Equity Shares | Percentage of shares pre-IPO |
| 1 | Peak XV Partners Pine Investment Holdings | 21,60,43,669 | 20.25% |
| 2 | Macritchie Investments Pte. Ltd. (An affiliate of Temasek) | 7,53,39,823 | 7.06% |
| 3 | PayPal Pte. Ltd. | 6,37,44,925 | 5.98% |
| 4 | Actis Pine Labs Investment Holdings Limited | 6,13,62,126 | 5.75% |
| 5 | Mastercard Asia/Pacific Pte. Ltd. | 5,56,49,186 | 5.22% |
| 6 | Alpha Wave Ventures II, L.P. | 3,59,42,015 | 3.37% |
| 7 | AIM Investment Funds (Invesco Investment Funds) | 3,01,77,058 | 2.83% |
| 8 | Madison India Opportunities IV | 2,83,53,206 | 2.66% |
| 9 | B. Amrish Rau (CEO) | 2,63,91,154 | 2.47% |
| 10 | Lone Cascade, L.P. | 2,53,02,980 | 2.37% |
| 11 | Act Equity Holdings Pte Ltd. | 2,13,65,820 | 2.00% |
Pine Labs IPO: Marquee investors
There are several prominent investors participating in the OFS. These include names like Sofina Ventures, PayPal, Peak XV Partners, Madison India, etc. Below is a list of investors participating in OFS:
• Peak XV Partners Pine Investment Holdings: Up to 2.30 crore equity shares
• Actis Pine Labs Investment Holdings: Up to 88 lakh equity shares
• Macritchie Investments Pte. Ltd.: Up to 87.47 lakh equity shares
• PayPal Pte. Ltd.: Up to 67.87 equity shares
• Mastercard Asia/Pacific Pte. Ltd.: Up to 59.25 lakh equity shares
• AIM Investment Funds (Invesco Investment Funds), on behalf of its series portfolio Invesco Developing Markets Fund: Up to 32.13 lakh equity shares
• Madison India Opportunities IV: Up to 30.18 equity shares
• Sofina Ventures S.A.: Up to 19.98 lakh equity shares
• Altimeter Growth Partners Fund III, L.P.: Up to 18.97 lakh equity shares
Here’s an interesting fact: Peak XV Partners Pine Investment Holdings acquired the shares at the lowest Weighted Average Cost of Acquisition (WACA) among these investors.
| Selling Shareholder | WACA (in Rs) | Shares held pre-offer | Percentage of shares held pre-offer |
| Peak XV Partners Pine Investment Holdings | 5.6 | 21,60,43,669 | 20.25% |
| Actis Pine Labs Investment Holdings Limited | 71.43 | 6,13,62,126 | 5.75% |
| Macritchie Investments Pte. Ltd. (Temasek affiliate) | 76.67 | 7,53,39,823 | 7.06% |
| PayPal Pte. Ltd. | 77.78 | 6,37,44,925 | 5.98% |
| Mastercard Asia/Pacific Pte. Ltd. | 128.62 | 5,56,49,186 | 5.22% |
Pine Labs IPO: Key financials
The company has successfully decreased its loss year-over-year (YoY) and turned profitable ahead of IPO in the first quarter of FY26. The company generated a profit of Rs 4.79 crore in Q1FY26. This profit was posted after a loss of Rs 27.89 crore in the same quarter of the previous year.
In FY25, the company posted a net loss of Rs 14.55 crore, bringing it down from Rs 34.19 crore in FY24.
Moving ahead to revenue, the company saw an increase in revenue growth in recent periods. Its revenue from operations rose by 18% YoY in Q1FY26, compared to the same period in FY25.
In FY25, the company’s revenue jumped by 28.5% YoY to Rs 2,274.27 crore from Rs 1,769.55 crore it posted in FY24. Further, the company’s revenue from operations came in at Rs 1,597.66 crore in FY23.
| Particulars | FY23 (Rs. Cr.) | FY24 (Rs. Cr.) | FY25 (Rs. Cr.) |
| Revenue from operations | 1,597.66 | 1,769.55 | 2,274.27 |
| Net Profit / (Loss) for the year | -265.15 | -341.9 | -145.49 |
The company generated its revenue through two major operating segments: Digital Infrastructure and Transaction Platform Revenue (DITP) and Issuing and Acquiring Platform Revenue (IAP).
- Digital Infrastructure and Transaction Platform Revenue (DITP): This is the largest source of revenue for Pine Labs, derived from subscription fees, transaction fees, Value-Added Services (VAS), and other services offered to merchants, acquirers, credit partners, and consumer brands. This revenue primarily includes in-store and online infrastructure, affordability, VAS and transaction processing, and FinTech infrastructure.
- Issuing and Acquiring Platform Revenue (IAP): This includes revenue primarily from issuing and processing services, distributing prepaid cards, interest on funds held for customers, and breakage income.
| Period | DITP Revenue (in Rs. Cr.) | % of Total Revenue | IAP Revenue (in Rs. Cr.) | % of Total Revenue |
| FY25 | 1,603.23 | 70.49% | 671.05 | 29.51% |
| FY24 | 1,276.43 | 72.13% | 493.11 | 27.87% |
| FY23 | 1,152.40 | 72.13% | 445.26 | 27.87% |
Pine Labs IPO: Business overview
Pine Labs is a fintech company that aims to simplify how businesses handle digital payments. The company provides tools and technology that help merchants, brands, enterprises, and banks manage transactions digitally.
It offers technology infrastructure that supports businesses in several countries, including India, Malaysia, the UAE, Singapore, Australia, the U.S., and Africa, helping them shift from traditional to digital payment systems.
This fintech company was founded in 1998. In earlier days, it was started as Pine Labs Private and later converted into a public company in June 2025. It functions through a wide corporate group of six direct subsidiaries and 18 step-down subsidiaries.
Some of its key group entities include Setu, Mosambee, and the Fave Group. The company’s business is divided into two main platforms – the Digital Infrastructure and Transaction Platform, and the Issuing and Acquiring Platform.
The first helps merchants accept different payment types and manage sales through its main product, Pine Labs One.
Looking at its second platform, the company provides card issuing and processing services for banks and brands, managing prepaid and gift card programs under its Pine Labs Prepaid business.
Pine Labs IPO: Key risks
In its red herring prospectus, the company has mentioned several key risks. Some of the major ones include –
Losses in recent years: The company highlighted the losses incurred in FY25. According to the DRHP, “we have incurred losses in the recent past, including a loss for the year of Rs 145.49 crore in FY25, primarily driven by our total expenses, which was 104.29% of total income in FY25. There can be assurance that we will not continue to suffer losses in the future.”
Negative cash flows from operations: Pine Labs also warned potential investors about negative cash flow. “We have had negative cash flows from operations in the recent past. Our net cash used in operating activities in the three-month period ended June 2025 was Rs 281.19 crore. There can be no assurance that we will not continue to generate negative cash flows in the future,” it stated in the DRHP.
Risk of losing customers: The customer base is crucial for Pine Labs, too. The draft red herring prospectus highlighted, “If we are unable to retain our existing customers and acquire additional customers, our business, financial condition, and results of operations could be adversely affected.”
Regulatory oversight by RBI and ReBIT: “Our operations are subject to regulation, oversight and inspection by the Reserve Bank of India (RBI) and the Reserve Bank Information Technology (ReBIT),” the company stated. According to them, any adverse observations, proceedings or notices from the RBI or ReBIT may adversely affect business, financial condition.