Pine Labs' ₹3,900cr IPO now open: Should you bid?
What's the story
Pine Labs, one of India's leading merchant payments company, has raised ₹1,753 crore from over 70 anchor investors. The funds were raised a day ahead of its ₹3,899 crore initial public offering (IPO), which opened for subscription today. The board of directors at Pine Labs approved the allocation of 7.9 crore equity shares to eligible anchor investors at ₹221 per share—the upper end of the price band. The subscription window to bid for Pine Labs will close on November 11.
Investor interest
Domestic mutual funds accounted for 47% of the anchor allocation
Among the prominent names backing Pine Labs's IPO are SBI Mutual Fund, HSBC, Mirae Asset, and Axis Mutual Fund. These large domestic funds accounted for 47% of the anchor allocation with a contribution of ₹828 crore. Global investors such as Singapore-based Integrated Core Strategies and Custody Bank of Japan also participated in this round.
Market strategy
Pine Labs's IPO to fetch ₹3,899 crore
Pine Labs's ₹3,899 crore IPO comprises a fresh issue of shares worth ₹2,080 crore and an offer for sale (OFS) for the remaining ₹1,819 crore. Investors can bid for one lot of 67 shares at a minimum investment of ₹14,807. The company has reserved 75% of the issue for institutional investors, 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors. At the upper end of this price band, Pine Labs could be valued at over ₹25,300 crore.
Growth trajectory
Financial performance and ESOP pool
Pine Labs reported a net profit of ₹4.8 crore in Q1 FY26. Its operating revenue grew by 28.5% year-on-year to ₹2,274 crore in FY25, up from ₹1,769 crore in FY24. In Q1 FY26 alone, the company's revenue increased by 17.8% year-on-year to ₹615 crore. The company has also set aside an ESOP pool worth ₹1,360 crore with 61.5 million options granted as of June 2025 at the upper end of its IPO price band.