Pine Labs IPO: Plans to File DRHP for ₹5,000–6,000 Crore Issue by June-End

Pine Labs, one of India’s leading merchant payment and consumer fintech firms, is preparing to take a major step towards going public. The company is expected to file its Draft Red Herring Prospectus (DRHP) with SEBI by the end of June, aiming to raise substantial capital through its upcoming IPO, as per an Economic Times report.

Company Set to File DRHP with SEBI by June End

Pine Labs, based in Noida, is targeting a public listing later this year and is preparing to submit its DRHP with the Securities and Exchange Board of India (SEBI) by the end of June. The fintech firm intends to raise between ₹5,000 crore and ₹6,000 crore through this Initial Public Offering.

The valuation of the company is expected to be in the range of $4 billion to $5 billion, aligning closely with its previous private valuation. Investment banks, including Axis Capital, JP Morgan, Morgan Stanley, Citi and Jefferies have been appointed as bankers for the issue.

Strategic Plans and Market Timing

As per a news report, the company is planning to time the Pine Labs IPO towards the end of the year, depending on prevailing market conditions. Pine Labs has yet to issue an official statement regarding the IPO’s size, timing or valuation.

The IPO preparations are being made after the company completed its corporate restructuring. The firm, which was previously headquartered in Singapore, underwent a reverse flip process in April after obtaining approval from the National Company Law Tribunal’s Chandigarh bench.

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Financial Performance

According to regulatory filings, Pine Labs posted an operating revenue of ₹1,743 crore for FY24. However, the company reported a pre-tax loss of ₹339 crore.

Pine Labs has positioned itself as a significant player in the Indian offline merchant payments sector and has diversified into other segments, including online payments and consumer lending. In 2021, it acquired Southeast Asian fintech firm Fave, expanding its footprint across Asia.

Peer Activity in the IPO Space

Pine Labs is among several fintech companies planning IPOs in 2024. Pine Labs had previously explored a US listing in 2022, filing its IPO documentation confidentially with the US Securities and Exchange Commission (SEC). That attempt sought to raise about $500 million.

Conclusion

Pine Labs’ impending DRHP filing represents a pivotal moment in its journey towards becoming a publicly listed entity. With a strong investor base, growing fintech offerings and extensive market presence, the company is set to join the ranks of India’s prominent publicly traded fintech players.

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