Post by : Badri Ariffin

Pine Labs, the Noida-based fintech leader, has reported a solid response to its initial public offering (IPO), achieving a 52% subscription on the second day of its share sale on Monday, November 10. According to NSE data, investors have bid for 5.08 crore shares out of the 9.78 crore shares available.

The retail investor segment led the charge with an impressive 86% subscription rate, while qualified institutional buyers (QIBs) accounted for 60% of their allotted shares. Non-institutional investors (NIIs) have shown more moderate interest, resulting in a 12% subscription.

The ₹3,899.91 crore IPO, which remains open until November 11, is positioned within a pricing range of ₹210–₹221 per share, with a minimum lot size of 67 shares. The offering consists of a fresh issue of ₹2,080 crore alongside an offer for sale (OFS) of ₹1,819.91 crore by current investors.

Allocation of Proceeds

The proceeds from the IPO will be utilized strategically by Pine Labs as follows:

• Repayment of Debt: ₹532 crore

• Investments in Subsidiaries: ₹60 crore

• Technology, Cloud Infrastructure, and DCP Acquisition: ₹760 crore

• Additional Tech & Cloud Investments: ₹213.37 crore

• Remaining Funds: For inorganic acquisitions and general corporate expenses

The company is anticipated to make its trading debut on November 14.

Global Presence and Business Model

Pine Labs has established itself as a trailblazer in the digitization of commerce, offering payment and transaction solutions tailored for merchants, enterprises, consumer brands, and financial institutions. Its technology backbone facilitates digital transactions in India and several key international markets, such as the UAE, Malaysia, Australia, the US, Singapore, and parts of Africa.

Grey Market Trends

In the grey market, shares of Pine Labs are trading at ₹224, reflecting a premium of ₹3 above the upper limit of the IPO pricing, indicating cautious optimism among investors.

The positive trend from retail investors, along with consistent interest from global buyers, makes Pine Labs’ market debut a focal point for both individual and institutional stakeholders.

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