Pine Labs IPO opens for subscription; should you apply? Check GMP, other key details

The initial public offering (IPO) of fintech major Pine Labs will open for subscription on Friday, November 7, in the primary market. The fintech company raised ₹1,753-crore from anchor investors a day earlier.

Nomura, Templeton MF, Mirae Asset MF, Massachusetts Institute of Technology, HSBC, Edelweiss MF, Morgan Stanley, Abakkus Flexi Edge Fund-1, Amundi Funds, Motilal Oswal, Susquehanna Pacific, Bharti Axa, Reliance General Insurance are some of the prominent names that feature in the list of anchor investors for the Pine Labs IPO.

Pine Labs has fixed a price band of ₹210-221 per share for its ₹3,900-crore issue, valuing the firm at ₹25,377 crore. Investors can bid in lots of 67 shares and in multiples thereof.

The IPO will remain open for bidding from November 7 to November 11.

Analyst recommendations

Angel One: Neutral

At the upper price band, Pine Labs' valuation cannot be meaningfully compared on a P/E basis as the company remains loss-making at the net level.

On an EV/EBITDA basis, it trades at a premium to listed peers, leading to valuation discomfort despite a strong business and sector outlook. Angel One has assigned a 'Neutral' rating for investors with a medium to long-term view.

SBI Securities

: Subscribe for long term

The brokerage said that Pine Labs' operations have shown a turnaround with robust growth in EBITDA and adjusted EBITDA between FY23 and FY25. Backed by a strong business model, the brokerage expects the company to deliver profitable growth and has recommended a 'Subscribe' rating with a long-term investment horizon.

Grey market and issue details

According to market observers, Pine Labs shares were trading at a 5% premium in the grey market. However, the grey market premium is only an indicator of investor sentiment in the unlisted space and is subject to rapid change.

Among existing shareholders, Peak XV Partners, PayPal, and Mastercard will offload 8.23 crore shares, lower than the 14.78 crore shares planned in the June draft prospectus.

The company will also raise ₹2,080 crore through a fresh issue, down from ₹2,600 crore earlier, while the offer for sale (OFS) component will comprise shares worth ₹1,819.91 crore.

The fresh proceeds will be used for technology expansion, debt repayment, and international growth, while the OFS will provide partial exits to existing investors.

Company overview

Pine Labs is a technology-led payments firm focused on digitising commerce for merchants, consumer brands, enterprises, and financial institutions. Its platform enables digital payments, billing integration, loyalty and rewards management, affordability options for consumers, and other value-added services such as dynamic currency conversion and store digitisation.

As of June 2025, Pine Labs had a network of 9.8 lakh merchants, 716 consumer brands and enterprises, and 177 financial institutions across India, Malaysia, Singapore, the UAE, Australia, the US, and Africa.

A leading player in point-of-sale and merchant solutions, Pine Labs competes with peers such as Paytm and Walmart-owned PhonePe.

The company reported a profit of ₹26.14 crore for the nine months ended December 2024, on a revenue of ₹1,208 crore.

Why the company remains loss-making

- Scaling its ecosystem of merchants, consumer brands, enterprises, financial institutions, and partners

- Pursuing acquisitions to strengthen product capabilities

- Expanding across key international markets

- Investing in technology and product development

Axis Capital, Morgan Stanley India, Citigroup Global, JPMorgan India, and Jefferies India are the book-running lead managers, while KFin Technologies is the registrar to the issue.

The share allotment is likely to be finalised on November 12, 2025, with listing on the BSE and NSE tentatively scheduled for November 14.