Pine Labs IPO Day 3: Weak GMP, tepid subscription demand. Should you apply? – News Air Insight

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Fintech company Pine Labs is in the final day of its Rs 3,900 crore initial public offering (IPO), but investor enthusiasm appears to be waning. The issue, which closes today, has seen a lukewarm response so far. By the end of Day 2, the IPO was subscribed to only 54%, receiving bids for 5.31 crore shares against the 9.78 crore shares on offer.

In the grey market, sentiment remains subdued. The Pine Labs IPO is currently trading at a modest 1.36% premium, down from 1.81% earlier and 5% previously — a sign of fading investor enthusiasm. The company has set the price band at Rs 210–Rs 221 per share.

Pine Labs IPO subscription status


As of the end of Day 2, the Pine Labs IPO had received a moderate response, with overall subscription standing at 54%, according to BSE data.Retail Individual Investors (RIIs): The retail portion saw relatively better participation, with 87% of the 1.81 crore shares reserved for this category being subscribed.

Non-Institutional Investors (NIIs): The high-net-worth and non-institutional investor segment showed muted interest, attracting bids for only 12% of the 2.71 crore shares set aside for them.

Qualified Institutional Buyers (QIBs): Among institutional investors, QIBs subscribed to 64% of the 5.24 crore shares allocated, reflecting some level of institutional confidence, though demand remains below full subscription so far.

Pine Labs IPO GMP today: Sentiment stays weak


Investor sentiment in the grey market remains muted, with the Pine Labs IPO trading at a modest 1.36% premium, down from 1.81% earlier and 5% previously, reflecting waning investor interest. The company has set the price band at Rs 210–Rs 221 per share.

However, investors should remember that the GMP is an unofficial indicator based on grey market trades and may not accurately reflect the actual listing performance. The stock’s price on listing day could vary significantly, depending on subscription levels, market sentiment, and broader market conditions at the time of debut.

Pine Labs IPO details


Pine Labs has launched its Rs 3,899.91 crore initial public offering (IPO), comprising a fresh issue of 9.41 crore shares worth Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares valued at Rs 1,819.91 crore. The company has set the price band for the issue at Rs 210–Rs 221 per share.

The subscription window opened on November 7 and will close on November 11. The basis of allotment is expected to be finalised on November 12, with the company’s shares likely to list on the BSE and NSE on November 14.

Business overview


Founded as a merchant payments company, Pine Labs has evolved into one of India’s leading merchant commerce platforms, providing a wide range of digital payment solutions, card issuance services, and merchant financing options.

With a growing presence across India, Southeast Asia, and the Middle East, Pine Labs serves more than 980,000 merchants and 177 financial institutions as of June 2025. Built on a cloud-based, API-first infrastructure, the company enables seamless integration for merchants and financial partners, reinforcing its position as a key player in the fintech and digital payments ecosystem.

Financial performance and turnaround


In FY25, Pine Labs reported revenue of Rs 2,274 crore, marking a 28% year-on-year growth. The company’s adjusted EBITDA rose sharply to Rs 357 crore, up from Rs 158 crore in FY24, reflecting a strong operational recovery.

Meanwhile, adjusted PAT losses narrowed to Rs 109 crore, compared with Rs 342 crore in the previous year. Pine Labs also achieved positive EBITDA margins of 9.6% and adjusted EBITDA margins of 15.7%, highlighting improvements in efficiency, scalability, and profitability.

Analysts view: Subscribe for long-term investment


In its IPO note, SBI Securities recommended a ‘Subscribe for long-term investment’ rating, citing Pine Labs’ strong growth trajectory, improving profitability, and a robust addressable market. The brokerage noted that the fintech player is well-positioned to capitalise on the Rs 276 trillion digital payment opportunity expected by FY29, supported by deep partnerships with leading consumer brands and banks such as Croma, HDFC Bank, LG Electronics, and Apollo Pharmacy.

At the upper price band, Pine Labs is valued at an EV/EBITDA multiple of 82.8x and EV/Sales of 8x on post-issue capital. The company plans to use Rs 532 crore from the IPO proceeds to repay debt and another Rs 790 crore to strengthen technology, expand its cloud infrastructure, and fund growth initiatives.

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“Pine Labs’ operations have witnessed a strong turnaround with robust growth in EBITDA and adj. EBITDA during FY23–FY25. On the back of its scalable business model and diversified ecosystem, we believe the company is well placed to deliver profitable growth,” SBI Securities said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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