The offering includes a fresh issue worth up to Rs 2,080 crore and a share sale by existing investors for the balance amount.
The public issue will open for bidding on Friday, November 7, and close on Tuesday, November 11. The anchor investor bidding in the IPO will be conducted a day prior, on Thursday, November 6.
Shares of Pine Labs are proposed to be listed on both the BSE and NSE.
Pine Labs IPO structure
The IPO consists of a fresh issue of equity shares aggregating up to Rs 2,080 crore and an offer for sale (OFS) of up to 82,48,279 equity shares by existing shareholders.
The selling shareholders include major global investors such as Peak XV Partners, Actis, Mastercard, PayPal, Sofina Ventures, Madison India, and others.
The equity shares in the offer for sale will be sold at prices substantially higher than their weighted average cost of acquisition.
Pine Labs IPO: Category-wise reservation
The offer includes a reservation for eligible employees, aggregating up to Rs 25 crore. Employees bidding under this quota will be eligible for a discount of Rs 21 per equity share on the final offer price. This reservation aims to encourage employee participation in the company’s public offering.
Retail investors can bid in the offer for a minimum of 67 equity shares and in multiples thereafter. The offer’s price to earnings (P/E) ratio based on the diluted EPS for fiscal 2025 is 144.83 times at the lower end of the price band (Rs 210), and 152.41 times at the upper end (Rs 221). These valuations are significantly higher than the industry average P/E ratio of 61.78 times.
The offer will follow the book-building process, with the allocation as per Sebi norms: at least 75% of the net offer is reserved for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Bidders (NIIs), and up to 10% for Retail Individual Investors (RIIs).
IPO proceeds will fund overseas expansion, technology investment and aid in debt reduction.
Also read: ‘Dumb money is chasing dumb IPOs’: Shankar Sharma on India’s public markets amid Lenskart buzz
Pine Labs IPO: Lead managers and registrar
Axis Capital, Morgan Stanley, Citigroup, J.P. Morgan, and Jefferies India have been appointed as the book-running lead managers (BRLMs) to the offer. KFin Technologies Limited is the registrar of the issue.
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