Pine Labs Limited - IPO Update: Issue Size, Price Band, Company Overview & Our View

IPO Details

Company Overview

Pine Labs is a technology company focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions. Their advanced technology infrastructure helps to accelerate their digitization journey in India and a growing number of international markets including Malaysia, UAE, Singapore, Australia, the U.S. and Africa. The company’s offerings can broadly be categorised as Digital Infrastructure, Transaction Platform, and Issuing and Acquiring Platform.

In FY 2025, the company processed ₹11,424.97 billion in GTV and 5.68 billion transactions through its platform. As of June 30, 2025, the company had 988,304 merchants, 716 consumer brands and enterprises, and 177 financial institutions using its platform. Further, 28 Issuers in 17 countries use the company’s end-to-end issuing, acquiring, and transaction processing software. In India's Digital Checkout Points (DCP) based Pay Later landscape, the company was the market leader in transaction value processed in FY 2025. In FY 2025, the company was the largest player in closed and semi-closed loop gift card issuances in India, in terms of transaction value. The company offered more than 330 business software applications as of June 30, 2025 and has cumulatively issued over 3.67 billion prepaid cards for consumer brands and enterprises.

Key Highlights

Objects of the Issue

Offer for Sale of 82,348,779 Equity Shares. The company will not receive any proceeds from the Offer for sale.

Our View

Incorporated in 1998, Pine Labs is a technology company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises, and financial institutions. Since incorporation, they have grown organically and inorganically through multiple acquisitions. The company earns revenue through multiple monetization models and from each constituent in their ecosystem, enabling self-reinforcing network effects, at scale.

Total market opportunity in India for the Company in terms of total payment value was approximately ₹116.8 trillion (US$1.4 trillion) in Fiscal 2025 and is projected to grow further at a CAGR of 22-24% to ₹256-276 trillion (US$3.0-3.3 trillion) by Fiscal 2029 and in select international geographies.

However, risks to consider are losses in the recent past, negative cash flows from operations in the recent past, direct regulatory oversight by the Reserve Bank of India (“RBI”), cybersecurity, data or privacy breaches, challenges in expanding into new geographic regions, highly competitive industry may adversely affect the business, financial condition and results of operations.

On the financial front from FY23-FY25, the company’s topline grew at CAGR 19% from FY23-FY25. At the same time bottom-line presented loss but turned positive in Q1FY26 at ₹48 Cr. Its adjusted EBITDA margin stood at 19.57% in Q1FY26. The contribution margin increased to ₹1,728.88 Cr. in FY 2025 from ₹1,281.04 Cr. in FY 2023. Total borrowings are at ₹889 Cr. on June 30, 2025. The issue is priced at a P/BV of 9.74 based on its NAV of Rs. 22.69 as at Q1FY26 and if we attribute FY26 earnings, the P/E stands at ~1,216x. As per RHP industry average P/E is around 62x. The issue is aggressively priced.

The company has been able to grow the brand, business presence and expertise with innovative technology, strong institutional backup and business model. High risk Investors seeking long term fintech exposure may subscribe to the issue.