Pine Labs Ltd IPO – Mainboard
Company Overview
Pine Labs Ltd is a leading merchant commerce and payment solutions platform in India and Southeast Asia. Established in 1998, the company’s ecosystem connects 9.2 lakh+ merchants, 666 consumer brands, and 164 financial institutions as of FY25. Pine Labs empowers merchants by providing Point-of-Sale (PoS) terminals, QR code payments, “Buy Now Pay Later” (BNPL), gift cards, digital wallets, cloud-based loyalty, and digital lending and distribution solutions.
Pine Labs stands out for its cloud-native, omni-channel tech platform, deep partnerships across retail, fuel, telecom, e-commerce, and healthcare sectors, and strong innovation in payment technology and merchant financing.
Read Full DRHP here:| SEBI DRHP PINE LABS |
IPO Details
| Parameter | Details |
|---|---|
| IPO Opening Date | November 7, 2025 |
| IPO Closing Date | November 11, 2025 |
| Price Band | ₹210 – ₹221 per share |
| Minimum Lot Size | 67 shares (~₹14,807 at upper band) |
| Issue Size | ₹3,899.91 crore (Fresh ₹2,080 Cr + OFS ₹1,819.91 Cr) |
| Fresh Issue | 9.41 crore shares (₹2,080 Cr) |
| Offer for Sale (OFS) | 8.23 crore shares (₹1,819.91 Cr) |
| Face Value | ₹1 per share |
| Listing | November 14, 2025 (BSE, NSE) |
| Registrar | Kfin Technologies Limited CLICK HERE |
| Bookrunners | Axis Cap, IIFL Sec, Kotak Mahindra, Morgan Stanley, ICICI Securities |
Use of Proceeds
- ₹870 crore: Repayment/prepayment of borrowings
- ₹760 crore: Investment in technology, cloud infra, DCPs, and product development
- ₹60 crore: Subsidiary expansion across SE Asia and Middle East
- Balance: General corporate purposes and acquisitions
Financial Performance (Core Metrics)
| Metric | FY23 | FY24 | 9M FY25 |
|---|---|---|---|
| Revenue from Ops (₹Cr) | 1,703 | 2,006 | 1,208 |
| Total Income (₹ Cr) | 1,807 | 2,110 | 1,274 |
| EBITDA (₹ Cr) | 227 | 289 | 173 |
| EBITDA Margin (%) | 13.3% | 14.4% | 14.3% |
| PAT (₹ Cr) | (220.7) | (69.3) | 26.1 |
| PAT Margin (%) | -12.9% | -3.4% | 2.2% |
| ROE (%) | -21.2% | -7.9% | 2.6%* |
| Cash from Ops (₹ Cr) | (56.2) | (184.7) | (281.2) |
ANALYSIS:
- Turnaround: After years of losses, Pine Labs turned profitable in 9MFY25 (₹26.1 crore PAT vs ₹151.6 crore loss YoY), driven by 23% YoY revenue growth and operating leverage.
- Strong Revenue Growth: 15–30% annual growth driven by digital payments adoption, BNPL, and SaaS merchant services.
- Margin Expansion: EBITDA margins improving but overall profit margins remain moderate due to high technology and development costs.
- Cash Burn: Cash flow is still negative due to heavy tech capex and market expansion.
Strengths
- Tech-Enabled Scale: Digital first, cloud-native architecture with a highly secure network across 9 countries.
- Sticky Merchant Base: Deep integrations with top Indian retailers, high share of enterprise long-tenure relationships.
- Value-Added SaaS: Recurring revenues from new age merchant services beyond transactions.
- Brand & Financial Sector Trust: Decades-long relationships with banks, card networks, and tech investors.
- Pan-Asian Expansion: Early mover in digital payments Southeast Asia and UAE.
Risks & Weaknesses
- Past Losses: Recent profitability is a turnaround; company posted losses in each of the last three full years; profit sustainability is not proven.
- Customer Concentration: Top 10 clients contribute ~29–31% revenue, posing risk if any major contract is lost.
- Cash Burn & Capex: Large investments in technology, cloud, and acquisitions continue to sap cash, with negative operating cash flow.
- High Competition: Faces stiff competition from Razorpay, Paytm, PhonePe, BharatPe, and new upstarts; risks of margin contraction amid price wars.
- RBI & Regulatory Dependence: Stringent digital payment norms and operational oversight by RBI, ReBIT. Regulatory/compliance breaches can materially harm operations.
- High Valuation: Implied forward P/E over 70x, richly valued for a fintech still solidifying profitability.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.