Indian Fintech Firm Pine Labs Scales Down IPO Ahead of November 7 Launch

Indian fintech company Pine Labs has reduced the size of its upcoming initial public offering (IPO), cutting the portion offered by existing investors by 44% and the amount of new shares issued to raise funds by 20%, according to an updated prospectus.

The IPO, scheduled for November 7–11, comes amid a busy spell in India’s primary market. Pine Labs, which provides payment solutions such as point-of-sale terminals, competes with firms including Paytm (PAYT.NS) and Walmart-owned PhonePe.

Existing investors such as Peak XV Partners, PayPal, and Mastercard now plan to sell a combined 82.3 million shares, down from 147.8 million proposed in the June draft prospectus.

The company is also looking to raise ₹20.8 billion ($236.65 million), compared with ₹26 billion ($295.81 million) planned earlier, according to the October 31 filing.

Under Indian regulations, companies may adjust their IPO size after submitting draft papers.

Reuters could not immediately determine why Pine Labs reduced the size of its offering or what its expected post-IPO valuation would be. Sources previously told Reuters that the company had been targeting a $6 billion valuation at the time of its June filing.

Pine Labs did not immediately respond to Reuters’ request for comment.

The updated filing shows that Peak XV Partners plans to sell 23 million shares, while PayPal (PYPL.O) and Mastercard (MA.N) intend to sell 6.7 million and 5.9 million shares, respectively.

London-based private equity firm Actis and Singapore’s Temasek are also among investors trimming their stakes.

India has emerged as the world’s third-largest IPO market this year, with expectations of raising a record $20.5 billion in 2024, driven by blockbuster listings such as LG Electronics India (LGEL.NS).

Other tech-driven firms — including Groww, Lenskart, and boAt — are also preparing to tap the equity markets.

Pine Labs reported a profit of ₹261.44 million on revenue of ₹12.08 billion for the nine months ended December 2024.
(Exchange rate: $1 = ₹87.8950)