Pine Labs is set to submit draft documents for its initial public offering (IPO) by mid-February : Pine Labs IPO
Pine Labs IPO: Work is progressing rapidly at Pine Labs as the fintech company prepares to submit documents for an initial public offering (IPO) by mid-February, according to sources familiar with the matter.
Having completed the necessary formalities to relocate its headquarters from Singapore to India, Pine Labs is eager to enter the Indian capital market as soon as possible, sources revealed. The company aims to go public by August, as indicated by bankers involved in the process.
Despite attempts to reach out to Pine Labs for comment on their plans, no response has been received. The company, known for providing online and offline payment gateway services to e-commerce and retail merchants, as well as offering gifting and credit services, has appointed Axis Capital, Citi, Morgan Stanley, Jefferies, and JPMorgan as bankers for the IPO.
Previously registered as a Singapore entity, Pine Labs had to undergo a process known as reverse flipping to list in India. This process was successfully completed a few weeks ago, paving the way for the upcoming IPO.
Expected to be one of the largest IPOs in the payments sector since Paytm’s $20 billion listing in 2021, Pine Labs has yet to finalize its valuation, according to sources. The company is unlikely to seek a significantly higher premium compared to its last funding round, which valued the company at $5 billion.
Baron Funds valued Pine Labs at $5.8 billion in April, while Invesco estimated its worth at $4.8 billion. Following the submission of the draft red herring prospectus (DRHP), the company will commence roadshows to aid in the valuation process. The goal is to ensure that investors receive a fair return on their investment.
It is anticipated that Pine Labs’ valuation could range between $6–8 billion (Rs 50,000–70,000 crore), resulting in a $1.2–1.5 billion IPO. Pine Labs has secured funding from a variety of private equity investors, venture capital firms, and foreign funds, including Peak XV, Paypal Ventures, Alpha Wave Global, Temasek, and MasterCard.
Sources have indicated that existing investors may sell off approximately 20 percent of the company. Pine Labs may also utilize this opportunity to raise additional primary capital. It has been emphasized to bankers that the IPO should not solely be viewed as an exit strategy for investors.
According to data from Tracxn, Pine Labs has successfully raised a total of $1.32 billion since its inception in 2009 through 14 funding rounds.
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