Pine Labs IPO

About Pine Labs IPO

Pine Labs Limited is launching an IPO comprising a fresh issue and an offer for sale. The fresh issue consists of an undisclosed equity shares of face value of ₹1 each, aggregating up to ₹2600 crore. The offer for sale size is up to 147,822,225 equity shares of face value of ₹1 each aggregating up an undisclosed amount.

Objectives of Pine Labs Limited IPO

• Repayment or prepayment, either in full or in part, of certain borrowings availed by the company and some of its subsidiaries.
  

• Investment in specific subsidiaries, namely Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, to support the firm’s international expansion efforts.
  

• Investment in IT assets, including expenditure on cloud infrastructure, procurement of digital check-out points, and other technology development initiatives.
  

• General corporate purposes and unidentified inorganic acquisitions.
  

Industry Outlook

According to the Redseer report, the total addressable market for the company in India, measured by total payment value, stood at approximately ₹91 trillion (US$1.1 trillion) for fiscal year 2024. This market is expected to expand rapidly, with projections indicating a compound annual growth rate (CAGR) of 23–25%, potentially reaching ₹255–280 trillion (US$3.0–3.3 trillion) by fiscal year 2029. This projection is driven by the growth of the digital payment ecosystem and increased penetration of affordability solutions.

Company Information

The company is a technology-driven organisation focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises, and financial institutions. Its advanced technology infrastructure supports the digitisation efforts of clients across India, Malaysia, UAE, Singapore, Australia, the U.S., and Africa.

The firm’s offerings are broadly categorised into two segments: The digital infrastructure and transaction platform and the issuing and acquiring platform. The digital infrastructure and transaction platform enables merchants to accept a wide range of in-store and online payment methods, thereby simplifying and powering the checkout process.

Additionally, the company provides value-added services such as dynamic currency conversion, payment aggregation, and integration with various business software applications through its application marketplace, helping digitise merchant operations.

It also develops public digital infrastructure for financial institutions using its API-enabled platform, offering capabilities across payments, data, and insights. This platform supports the full consumer lifecycle, including onboarding, underwriting, collections, and engagement.

Strengths of Pine Labs IPO

1. An ecosystem that enables commerce transactions and creates network effects
The company operates an integrated ecosystem that brings together merchants, consumer brands and enterprises, and financial institutions to enable commerce transactions and foster strong network effects. It directly engages multiple stakeholders, creating a dynamic platform that becomes more effective as participation increases. As the ecosystem grows, additional partners enhance the platform, making it more attractive to new merchants and consumers, further reinforcing the network effects. Since fiscal 2022, the ecosystem has seen consistent densification.

2. Deep partnerships with large merchants, consumer brands and enterprises, and financial institutions
The company has established deep partnerships across key verticals such as department stores, supermarkets, e-commerce, restaurants, consumer electronics, healthcare, and travel, as well as with financial institutions and technology firms. With a strong presence in India and growing international operations, it has built long-standing relationships with major partners such as Croma and HDFC Bank. These relationships have evolved over time through the offering of in-store digital payments, multi-issuer affordability solutions, issuing services, billing integrations, spend analytics, merchant dashboards, and loyalty programmes, with some customer relationships spanning more than a decade.

3. Full stack, cloud-based flexible and scalable technology platform
The company’s technology platform is a full-stack, cloud-based solution built for flexibility, scalability, and resilience. Designed specifically for the demands of digital commerce, the technology stack leverages cloud-native infrastructure to support high availability and rapid scalability under heavy transaction volumes. Its API-first architecture promotes seamless integration, interoperability, and ease of customisation for ecosystem partners. This modular and agile design enables quick deployment of new services while maintaining robust operational performance and security.

Risks of Pine Labs IPO

1. The company has incurred losses in the recent past, recording a loss of ₹187.17 crore in fiscal year 2024 based on its restated consolidated financial information, and losses of ₹116.58 crore and ₹341.90 crore for the nine-month period ended December 31, 2024, and fiscal year 2024, respectively, based on its pro forma financial information. There is no assurance that future losses will not occur.

2. The company has experienced negative cash flows from operations, with net cash used in operating activities amounting to -₹35.5 crore in fiscal year 2024 as per its restated consolidated financial information. Future cash flows may continue to be negative.

3. A significant portion of the company’s revenue is concentrated among a limited number of customers. Its top ten customers contributed 31.02% and 35.24% of revenue based on Restated Consolidated Financial Information and 30.25% and 35.17% based on pro forma financial information for the nine months ended December 31, 2024, and Fiscal Year 2024, respectively. A reduction or termination of business by any of these key customers may materially impact the company’s financial condition and results.

4. The company and its subsidiaries are involved in ongoing legal proceedings. Any unfavourable outcomes could result in liabilities, penalties, and adverse effects on its cash flows, business performance, and reputation.

Anchor Investing Bidding Date: TBA

IPO Registrar and Book Running Lead Manager

IPO Registrar: KFin Technologies Limited.

Book Running Lead Manager: Axis Capital Limited, Morgan Stanley India Company Private Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited.

Pine Labs Business Model

The company is a technology-driven enterprise focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions. Its advanced technology infrastructure supports the digitisation journey of customers in India and globally, including markets such as Malaysia, UAE, Singapore, Australia, the U.S., and Africa.

Its services are broadly categorised into two platforms: the digital infrastructure and transaction platform and the issuing and acquiring platform. Since its establishment, beginning with a cloud-based payment platform in 2012, it has continuously evolved its capabilities in response to sector changes. Strategic acquisitions have expanded its offerings and reach. It serves industries such as retail, e-commerce, food service, healthcare, travel, finance, and government entities.

Across its markets in India and internationally, the company delivers its core offerings through its two primary platforms – digital infrastructure and transaction platform and issuing and acquiring platform – to enable seamless, secure, and digitised commerce.

Pine Labs Growth Trajectory

Over the last few years, Pine Labs Limited has demonstrated significant growth in its revenue from operations – increasing from ₹933.98 crores in FY 2022 to ₹1,341.01 crores in FY 2024. Meanwhile, EBITDA has slightly decreased – from ₹191.89 crores in FY 2022 to ₹177.29 crores in FY 2024. EBITDA margin has also shown a decline from 20.55% in FY 2022 to 13.22% in FY 2024.

How to Check Allotment Status of Pine Labs Limited IPO?

1. Visit the Registrar's Website
To check the IPO allotment status for Pine Labs Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose ‘Pine Labs Limited’ in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search'
  

Your Pine Labs Limited IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Pine Labs Limited IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Pine Labs Limited IPO bid, and allotment details will be displayed.

How to Apply for Pine Labs Limited IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  

• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
  

• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  

• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  

• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.