Pine Labs IPO Secures Rs 1,754 Crore from Anchor Investors Before Public Subscription Opens

Pine Labs, a fintech company, secured Rs 1,754 crore from anchor investors on Thursday. This comes just before its initial public offering (IPO) opens for public subscription. The anchor book attracted 71 funds, including Franklin Templeton and Morgan Stanley Asia Singapore Pte Ltd. Domestic investors like SBI Mutual Fund and ICICI Prudential Life Insurance Company also participated, as per a BSE circular.

IPO Details and Allocation

The company allocated 7.93 crore equity shares to anchor investors at Rs 221 each. Of these, 3.75 crore shares, or 47.26% of the anchor portion, went to 12 mutual funds through 30 schemes. Pine Labs' Rs 3,900 crore IPO will be open from November 7 to November 11, with a price band set between Rs 210 and Rs 221 per share.

Offer for Sale and Shareholders

The IPO includes a fresh issue of shares worth Rs 2,080 crore and an Offer for Sale (OFS) of over 8.23 crore shares valued at Rs 1,819.9 crore at the upper end. Existing shareholders like Peak XV Partners and PayPal will sell their stakes under the OFS. The proceeds will help repay debt and invest in IT assets and cloud infrastructure.

Expansion Plans and Subsidiaries

Funds from the fresh issue will also support Pine Labs' subsidiaries such as Qwikcilver Singapore and Pine Payment Solutions in Malaysia. The company aims to expand its presence outside India. Initially, Pine Labs planned to raise Rs 2,600 crore through a fresh issue with an additional OFS component of up to 14.78 crore shares.

Company Overview and Market Presence

Based in Noida, Pine Labs focuses on digitising commerce through digital payments for merchants and financial institutions. Its technology supports transactions in India and international markets like Malaysia and the UAE. According to Redseer Report, it was the largest issuer of closed-loop gift cards in India by transaction value in FY2025.

In FY2025, Pine Labs processed payments worth Rs 11.42 lakh crore across 5.68 billion transactions. As of June 30, 2025, its platforms served over 9.88 lakh merchants and numerous consumer brands and financial institutions. The company's clientele spans sectors such as retail, e-commerce, healthcare, travel, and financial services.

Competitive Landscape

Pine Labs competes with domestic players like Paytm and Razorpay and international firms such as Adyen and Shopify. The company has long-standing partnerships with brands like Croma and HDFC Bank. It is recognised as a leading digital affordability enabler at checkout points.

The IPO reserves 75% for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors. Pine Labs plans to debut on the stock market on November 14.

With inputs from PTI