Fintech firm Pine Labs targets Rs 25,000 Cr valuation in upcoming IPO

Early investors in Pine Labs are expected to see big returns as the fintech company prepares for its much-awaited IPO, open for subscription from November 7 to November 11.

Gurugram-based Pine Labs, which offers merchant payment and digital commerce solutions, has set a price band of Rs 210–221 per share for its IPO. The issue includes a fresh issue worth Rs 2,080 crore and an OFS of up to 82.34 million shares by existing investors. The company aims for a post-issue valuation of Rs 24,217–25,377 crore ($2.7–2.8 billion).

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The IPO is being managed by Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies, while KFin Technologies will act as the registrar. The anchor investor round is scheduled for November 6, a day before the public issue opens.

The IPO gives early investors a major chance to exit, including Peak XV Partners (formerly Sequoia Capital India), Actis, Temasek’s MacRitchie Investments, PayPal, Mastercard, Madison India, Lone Cascade, and Sofina Ventures. Founder Lokvir Kapoor will also sell part of his stake.

Peak XV, which bought shares at an average of Rs 5.60, could see returns of about 37.5x at the lower end of the price band. Other investors like Actis (Rs 71.43), MacRitchie (Rs 76.67), PayPal (Rs 77.78), and Mastercard (Rs 128.62) are likely to earn 1x–4.5x returns. Kapoor, with an acquisition price of Rs 0.49 per share, could see 428x gains.

However, not all investors will profit. Invesco, which plans to sell up to 3.2 million shares bought at Rs 243.89, is expected to take a loss.
From the fresh issue, funds will be used to repay debt (Rs 532 crore), strengthen IT and cloud infrastructure, and invest in international subsidiaries like Qwikcilver Singapore, Pine Payment Solutions (Malaysia), and Pine Labs UAE. Around Rs 769 crore will go toward technology expansion.

Founded in 1998 by Lokvir Kapoor, Tarun Upadhyay and Rajul Garg, Pine Labs began as a card-based loyalty and payment platform for petroleum companies. Over time, it transformed into one of India’s leading providers of point-of-sale (PoS) and merchant commerce technology.

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Today, Pine Labs serves over one million merchants across sectors like retail, lifestyle, healthcare, grocery, travel, and e-commerce.

The company has expanded its business through several key acquisitions, including Qwikcilver (gift card solutions) and Mosambee (PoS and payment solutions).

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