Indian fintech firm Pine Labs pares IPO set to launch on November 7

Synopsis

Pine Labs, an Indian fintech company, has reduced its initial public offering size. Existing investors will sell fewer shares, and the company will raise less new capital. The IPO is scheduled for November 7 to November 11. This move comes as India sees a busy primary market with several other tech firms also planning listings.

Indian fintech firm Pine Labs has cut the size of its initial public offering, trimming by 44% the portion offered by existing investors and by 20% the new shares issued to raise funds, an updated prospectus showed.

The IPO, scheduled for November 7 to November 11, joins a wave of listings in a busy primary market. A provider of payment solutions such as point-of-sale terminals, Pine Labs competes with firms such as Paytm and Walmart-owned PhonePe.

Existing investors, such as Peak XV Partners, PayPal and Mastercard, will now look to sell a total of 82.3 million shares, down from the 147.8 million planned in June's draft prospectus.

The company is also looking to raise 20.8 billion rupees ($236.65 million), down from 26 billion ($295.81 million) in June, its October 31 prospectus showed.

Indian regulations let companies modify their IPO size to a certain extent after they file draft papers.

Reuters could not immediately determine why Pine Labs trimmed its offer, and its expected valuation after the IPO.

The company was eyeing a $6-billion valuation at the time of the June filing, sources had told Reuters.

Pine Labs did not immediately respond to a Reuters query.

The updated prospectus shows Peak XV will aim to sell 23 million shares, while PayPal and Mastercard plan to dispose of 6.7 million and 5.9 million, respectively.

London-based private equity firm Actis and Singapore-based Temasek are also among the investors paring their stakes.

India is the third-largest IPO venue this year, expected to exceed a record of $20.5 billion in funds raised in 2024 amid blockbuster listings by companies such as LG Electronics India.

Share sales by other tech-driven firms such as Groww, Lenskart, and boAt are also in the pipeline.

Pine Labs reported a profit of 261.44 million rupees for the nine months ended December 2024, off revenue of 12.08 billion.

($1=87.8950 rupees)

...moreless

...moreless