Retail investors give lukewarm response to Pine Labs IPO

Fintech major Pine Labs’ initial public offering (IPO) witnessed tepid demand from retail investors, with the issue subscribed just 2.46 times. Its grey market premium stood at Rs 0, indicating a likely listing at par with the issue price of Rs 221 per share.

The IPO was open for subscription from November 7 to 11, with a price band of Rs 210–221 per share and a minimum investment of Rs 14,070. The share allotment is expected to be finalized on November 12, and the company is scheduled to list on the BSE and NSE on November 14.

Pine Labs’ Rs 3,900 crore IPO 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 valued at Rs 1,820 crore by existing shareholders. Proceeds from the fresh issue will be used for debt repayment, technology upgrades, and international expansion.

According to exchange data, Pine Labs’ IPO was oversubscribed 2.46 times overall. The retail portion saw 1.22x subscription, QIBs (excluding anchors) 4x, and Non-Institutional Investors (NIIs) just 0.3x, while the employee portion was the most subscribed at 7.35 times.

Ahead of its initial public offering (IPO), Pine Labs raised Rs 1,754 crore from anchor investors. The anchor book attracted participation from over 70 institutional investors, including SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund, Morgan Stanley, Nomura, and Amundi Funds.

According to Entrackr’s analysis, Peak XV Partners (formerly Sequoia Capital India) is set to gain the most from Pine Labs’ offer for sale (OFS), realizing a 39.5X return on its investment. Madison India and Sofina Ventures are also expected to earn significant returns of 5.6X and 4.7X, respectively.

In FY25, Pine Labs reported a 28.5% year-on-year revenue growth to Rs 2,274 crore in FY25 from Rs 1,769 crore in FY24, while net losses fell 57% to Rs 145 crore. Notably, the company turned profitable in Q1 FY26, posting a net profit of Rs 4.7 crore on revenue of Rs 616 crore.