Pine Labs cuts IPO size in RHP; issue opens on Nov 7

Merchant payments and lending platform Pine Labs has filed its Red Herring Prospectus (RHP) with market regulator SEBI for its proposed Initial Public Offering (IPO).

The offer comprises a fresh issue of equity shares worth Rs 2,080 crore and an offer for sale (OFS) of up to 8.23 crore shares by existing shareholders. Notable investors participating in the OFS include Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.

Interestingly, the company has reduced both the fresh issue and OFS component in its RHP compared to the draft red herring prospectus (DRHP) filed in June.

Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies have been appointed as book-running lead managers for the issue. The IPO, being launched under Regulation 6(2) of SEBI’s ICDR regulations, does not fulfill the requirements under Regulation 6(1) of the same framework.

The equity shares are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The issue will open for subscription on November 7, 2025, and close on November 11, with the anchor book opening on November 6.

According to the RHP, Pine Labs plans to utilize the proceeds from the fresh issue for repayment of certain borrowings, investments in subsidiaries, IT asset upgrades, cloud infrastructure expenditure, procurement of digital checkout points, and technology development initiatives.

As per the DRHP, Peak XV is the largest external shareholder with a 20.25% stake, followed by Temasek (7.06%) and PayPal (5.98%). Actis Pine Labs Investment holds 5.75%, while Mastercard and Alpha Wave own 5.22% and 3.37%, respectively.

On the financial front, Pine Labs reported a 28.5% year-on-year growth in revenue to Rs 2,274 crore in FY25 from Rs 1,769 crore in FY24, while net losses declined by 57% to Rs 145 crore during the same period. Notably, in the first quarter of FY26, the company turned profitable, posting a net profit of Rs 4.7 crore on a revenue of Rs 616 crore.