The IPO received an overall subscription of 2.48 times, driven largely by institutional demand. The Qualified Institutional Buyers (QIB) portion was subscribed 3.97 times, while retail investors bid 1.27 times their quota. However, the Non-Institutional Investor (NII) segment saw a tepid response at 0.30 times. Ahead of the issue, Pine Labs raised Rs 1,753.8 crore from anchor investors, including several top global and domestic funds.
Analysts say the muted premium mirrors investor caution on valuation and profitability. While the company posted a 57% jump in profit after tax in FY25, it has only recently turned profitable after several years of losses. In FY25, Pine Labs reported total income of Rs 2,327 crore, up 28% year-on-year, and a profit after tax of Rs 4.79 crore, marking a turnaround from a Rs 145 crore loss in FY24. EBITDA margins also improved to 15.68% during the year.Domestic brokerage Angel One has issued a *Subscribe* rating, highlighting the strong growth prospects of India’s digital payments and fintech industry. The total addressable Total Payment Value (TPV) is estimated at $1.4 trillion in FY25 and projected to reach $3.0–3.3 trillion by FY29, implying a CAGR of 22–24%, driven by increasing card usage, affordability solutions, and deeper merchant digitisation.
“The market remains underpenetrated, offering significant headroom for growth. As adoption of omni-channel payment systems, BNPL (Buy Now, Pay Later), and prepaid card solutions accelerates across Tier-2 and Tier-3 cities—supported by favourable demographics, regulatory tailwinds, and rising financial inclusion—the sector presents strong long-term potential for integrated fintech platforms like Pine Labs,” the brokerage added.
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(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)