Fintech leader Pine Labs, which operates in the merchant payments and lending sectors, has filed its Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (Sebi) for its upcoming initial public offering (IPO).
According to the RHP, the IPO will include a fresh equity issue worth ₹2,080 crore and an offer for sale (OFS) of up to 82.34 million shares by existing investors.
Major investors to offload stakes
Leading the OFS is Peak XV Partners Pine Investment Holdings, which plans to sell up to 23 million shares. Other key participants include:
- Actis Pine Labs Investment Holdings – 8.8 million shares
- Temasek’s Macritchie Investments Pte. Ltd. – 8.75 million shares
- PayPal – 6.79 million shares
- Mastercard Asia/Pacific – 5.93 million shares
- Invesco – 3.21 million shares
- Madison India Capital – 3.02 million shares
- Sofina Ventures – 2 million shares
- Lokvir Kapoor (individual shareholder) – 2.22 million shares
Reduced issue size from DRHP
The latest filing marks a scale-down from the Draft Red Herring Prospectus (DRHP) submitted in June. The fresh issue has been cut by ₹520 crore, from ₹2,600 crore to ₹2,080 crore, while the OFS size has been reduced from 147.8 million to 82.34 million shares—a cut of 65.5 million shares.
IPO timeline and listing
Pine Labs’ shares will be listed on both the NSE and BSE. The IPO will open for subscription on November 7 and close on November 11, with the anchor investor bidding beginning on November 6.
The price band for the issue will be announced at least two working days before the opening date.
Utilization of funds
Pine Labs plans to allocate:
- ₹532 crore for debt repayment or prepayment,
- ₹760 crore for upgrading technology infrastructure (including IT assets, cloud expansion, and digital POS terminals),
- ₹60 crore for subsidiary investments to enhance international expansion, and
- The remaining amount for general corporate purposes and inorganic acquisitions.
Shareholding pattern and performance
As per the RHP, Peak XV Partners remains the largest institutional investor with a 20.25% stake, followed by Temasek (7.06%), PayPal (5.98%), Actis (5.75%), Mastercard (5.22%), and Alpha Wave Ventures (3.37%).
Operationally, Pine Labs reported a 28.5% year-on-year revenue growth in FY25, reaching ₹2,274 crore, up from ₹1,769 crore in FY24. Its net loss narrowed by 57% to ₹145.48 crore, compared to ₹341.9 crore a year earlier. Impressively, in Q1 FY26, the company turned profitable, posting a net profit of ₹4.78 crore on revenues of ₹615.91 crore.
Lead managers
The company has appointed Axis Capital, Morgan Stanley India, Citigroup Global Markets, JP Morgan India, and Jefferies India as the book-running lead managers. The IPO is being launched under Regulation 6(2) of SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations.
