Fintech major Pine Labs, which operates in the merchant payments and lending space, has submitted its Red Herring Prospectus (RHP) to the Securities and Exchange Board of India (Sebi) for its upcoming initial public offering (IPO).
As per the document, the public issue comprises a fresh equity issuance aggregating Rs 2,080 crore, alongside an offer for sale (OFS) of up to 82.34 million shares by existing investors.
Leading the OFS is Peak XV Partners Pine Investment Holdings, which plans to offload up to 23 million shares. Other key sellers include Actis Pine Labs Investment Holdings (up to 8.8 million shares), Macritchie Investments Pte. Ltd. (a Temasek entity) (up to 8.75 million shares), PayPal (up to 6.79 million shares), and Mastercard Asia/Pacific (up to 5.93 million shares).
The OFS also includes participation from Invesco (up to 3.21 million shares), Madison India Capital (up to 3.02 million shares), Sofina Ventures (up to 2 million shares), and individual shareholder Lokvir Kapoor (up to 2.22 million shares).
The latest development indicates that the company has scaled down the issue size from its initial proposal in the Draft Red Herring Prospectus (DRHP) filed in June. The fresh issue component has been reduced by Rs 520 crore from Rs 2,600 crore originally proposed in the DRHP. Similarly, the OFS size has been trimmed to 82.34 million shares from 147.8 million, marking a reduction of 65.5 million shares.
Pine Labs’ shares will be listed on both the NSE and BSE. Bidding for the issue will open on November 7 and close on November 11, with the anchor investor portion opening a day earlier, on November 6.
As per the RHP, the price band for the equity shares has not yet been finalised. The company is expected to announce the price range, along with any potential employee discount, at least two working days prior to the bid opening date.
Pine Labs intends to deploy Rs 532 crore of the fresh proceeds towards debt repayment or prepayment, Rs 760 crore for technology infrastructure investments—including IT asset upgrades, cloud expansion, and procurement of digital point-of-sale (DCP) terminals—and Rs 60 crore for investments in subsidiaries to expand its international presence. The remaining funds will go towards general corporate purposes and potential inorganic acquisitions.
Based on the RHP, Peak XV Partners is the largest institutional investor with a 20.25% stake, followed by Temasek at 7.06% and PayPal at 5.98%. Actis Pine Labs Investment holds 5.75%, while Mastercard and Alpha Wave Ventures own 5.22% and 3.37%, respectively.
The company reported strong operational performance in FY25, registering a 28.5% year-on-year increase in operating revenue to Rs 2,274 crore, up from Rs 1,769 crore in FY24. Net losses narrowed by 57% to Rs 145.48 crore from Rs 341.9 crore in the previous year. Furthermore, in Q1 FY26, Pine Labs turned profitable, posting a net profit of Rs 4.78 crore on revenues of Rs 615.91 crore.
The fintech firm has appointed Axis Capital, Morgan Stanley India, Citigroup Global Markets, JP Morgan India, and Jefferies India as the book-running lead managers for the IPO. The offering is being undertaken under Regulation 6(2) of SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations.