Pine Labs IPO Sees 7% Subscription on Day 1; GMP Slips to 2%

The ₹3,900 crore initial public offering (IPO) of Pine Labs received a tepid response on Day 1, with overall subscription reaching 7% so far. The fintech company’s grey market premium (GMP) dropped sharply to around 2%, down from 5% a day earlier.

According to stock market data, the issue has received bids for 65.5 lakh shares against the total offer size of 9.79 crore shares. Retail investors subscribed to 30% of their allotted portion, while Non-Institutional Investors (NIIs) booked around 3%. However, Qualified Institutional Buyers (QIBs) have yet to make significant bids.

Price Band and Valuation

The price band for the IPO is set between ₹210 and ₹221 per share, valuing Pine Labs at approximately ₹25,377 crore at the upper end. Investors can bid for a minimum of 67 shares, translating to an investment of ₹14,807 at the upper price band.

The IPO consists of a fresh issue worth ₹2,080 crore and an offer for sale (OFS) of 8.23 crore shares by existing investors such as Peak XV Partners, Macritchie Investments, Madison India, Mastercard, and PayPal.

The issue opened for public subscription on November 7 and will close on November 11. The allotment is expected on November 12, with listing scheduled for November 14 on stock exchanges.

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GMP Trend

Ahead of the listing, Pine Labs’ unlisted shares were trading at a slight 2% premium over the IPO price, as per data from Investorgain. This is a notable fall from earlier levels — 5% the previous day, 8% earlier this week, and 16% earlier this month.

Meanwhile, data from IPO Watch suggested a 5% premium, reflecting uncertainty around market sentiment.

Company Overview

Based in Noida, Pine Labs operates across in-store payment terminals, online payment gateways, and prepaid and gift card solutions, serving millions of merchants globally. It is recognized as India’s largest issuer of closed and semi-closed loop gift cards by transaction value.

The company also offers digital affordability and merchant solutions, and has expanded operations into Malaysia, UAE, Singapore, Australia, the US, and Africa.

Analyst Views

HDFC Securities noted Pine Labs’ strength in digital payment and merchant solutions, highlighting its leadership in issuing gift cards and digital checkout offerings.

However, Angel One assigned a ‘Neutral’ rating, citing valuation concerns. “At ₹221 per share, Pine Labs’ valuation remains high relative to peers on EV/EBITDA and is not comparable on a P/E basis as it’s still loss-making,” the brokerage stated.

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