Fintech company Pine Labs in Noida receives approval from SEBI for their Initial Public Offering (IPO)
Indian fintech firm Pine Labs has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). This significant milestone marks a new chapter in the company's growth story.
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs has evolved into a full-stack merchant commerce platform. The company offers point-of-sale terminals, online payment gateways, and various digital payment solutions.
In the financial year 2025 (FY25), Pine Labs reported a net profit of Rs 44.97 crore, a significant improvement from a loss of Rs 182.31 crore in the previous year. Total income for FY25 rose 25.5% year-on-year to Rs 1,735.1 crore, while expenses increased only 3.3% to Rs 1,676.8 crore for FY25.
The proposed offering will comprise a fresh issue of shares worth up to Rs 2,600 crore ($304 million) and an offer for sale of as many as 14.78 crore shares by existing investors. Among those set to pare holdings are Peak XV Partners, Temasek's Macritchie Investments, Actis, PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, and Lone Pine Capital's Lone Cascade. Notably, Pine Labs co-founder Lokvir Kapoor will also sell part of his stake.
The consortium of global investment banks shepherding the Pine Labs IPO includes Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies, acting as book-running lead managers for the offering. These investment banks will play a crucial role in managing the IPO.
The proceeds from the new share sale will be directed toward repaying or prepaying borrowings of about Rs 870 crore. Additionally, Pine Labs plans to invest in its international subsidiaries and allocate capital to strengthen its cloud infrastructure, expand digital checkout solutions, enhance IT assets, and cover general corporate purposes.
No official timelines for the IPO have been announced, but CEO Amrish Rau has indicated a target for listing in the second half of 2025. The IPO filing, which includes the draft red herring prospectus (DRHP), was submitted in late June, and SEBI's observations were secured on September 11.
As Pine Labs prepares for its IPO, it continues to make strides in the digital payment landscape. The company's growth, coupled with the support of its investors and the global investment banks managing the IPO, positions it well for continued success in the future.
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