Pine Labs made a positive debut on the Indian stock market on Friday, November 14, with its shares listing at a 9.5% premium to the issue price despite a mild response during the subscription of the IPO.
The fintech company’s stock debuted at Rs. 242 per share on both the NSE and BSE, against an IPO price of Rs. 221, defying expectations of a flat listing based on weak grey market signals.
After the debut, Pine Labs shares gained further momentum and climbed as high as Rs. 282.10, a 28% rise from the IPO price.
The stock is now stabilizing near Rs. 275 on the NSE and Rs. 274.85 on the BSE, reflecting better investor participation.
The rally pushed the company’s market capitalization to more than Rs. 31,100 crore, exceeding its initial valuation target of approximately Rs. 25,300 crore.
The Rs. 3,900 crore IPO opened between November 7 and 11, and ended with an overall subscription of 2.46 times. The Qualified Institutional Buyer (QIB) category recorded the strongest demand, with four times the subscription.
Retail participation was moderate, with the retail investor category subscribing 1.22 times. The non-institutional investor segment witnessed relatively weak interest, with only 30% subscription.
In contrast, the employee category displayed enthusiasm, subscribing 7.7 times their allotted portion.
A day before the issue opened, Pine Labs also secured Rs. 1,754 crore from anchor investors, further strengthening confidence.
Angel One maintained a Neutral rating, citing that Pine Labs’ valuations appeared stretched because the company remains loss-making at the net level and trades at a premium to its listed peers on EV/EBITDA metrics.
Prashanth Tapse of Mehta Equities commented that the IPO seemed “slightly expensive,” a factor reflected in the mild subscription numbers. He added that the stock may be suitable for risk-taking investors willing to adopt a long-term view.
Pine Labs plans to use the proceeds from the fresh issue of Rs. 2,080 crore to reduce debt, upgrade its IT and cloud infrastructure, acquire digital checkout devices, and support ongoing technology development plans.
The company will also allocate funds to strengthen its overseas subsidiaries in Singapore, Malaysia, and the UAE, reinforcing its expansion strategy beyond India.
The remaining portion of the IPO, valued at Rs. 1,819.9 crore, was offered through an offer-for-sale by existing shareholders.
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Headquartered in Noida, Pine Labs is a leading merchant commerce and digital payments company working with retailers, brands, banks, and enterprises.
It competes with established players such as Paytm, Razorpay, PhonePe, Infibeam, and PayU domestically, while internationally it faces competition from Adyen, Shopify, and Block.