Peak XV is set to make a near 40x return on its investment in unicorn Pine Labs, which has priced its initial public offering (IPO) in the range of Rs 210 – Rs 221. The early backer has a 20.25% stake in the fintech firm and invested at a weighted average price of Rs 5.60 per share. It is looking to sell up to 23 million shares in the IPO, which could fetch it as much as Rs 508 crore at the upper end of the price band.
Returns for other backers would be smaller. Private equity firm Madison India Capital, for instance, is set to make 5.6x returns, which could translate into a payday of around Rs 66 crore. Belgium-based VC firm Sofina Ventures is eyeing 4.7x returns in the IPO, potentially pocketing around Rs 44 crore.
Global investment firm Actis is set to make a 3x return on its investment, or about Rs 194 crore, US fintech giant PayPal could make 2.8x returns, or nearly Rs 150 crore, and Macritchie Investments (a subsidiary of Temasek) is set for 2.9x returns or Rs 193 crore.
Meanwhile, US-based hedge fund Lone Pine Capital’s Lone Cascade is set for only about 1.2x returns, potentially pocketing around Rs 53 crore, while Mastercard is set for 1.7x returns, or Rs 130 crore.
Among all the major institutional investors, only Invesco is likely to see a loss in this IPO, as the upper band of the IPO price is still lower than its weighted average cost of acquisition of Rs 243.89 a share. The discrepancy in these entry prices means Peak XV’s exit value per share is about 43.5 times that of Invesco.
Among its three co-founders, Lokvir Kapoor is looking to sell up to 2.2 million shares in the IPO, which could fetch him as much as Rs 49 crore. Kapoor holds a 1.96% stake in the company.