Pine Labs IPO: The initial public offering (IPO) of Pine Labs continued to witness a tepid response from investors during the second day of bidding on November 10, with the issue subscribed a little over 0.50 times by the end of Monday.
The Pine Labs IPO, which remains open until Tuesday, November 11, received bids for 5.32 crore shares against the total offer of 9.71 crore shares, resulting in an overall subscription of 0.55 times, according to exchange data.
The non-institutional investors (NII) and qualified institutional buyers (QIB) portions were subscribed 0.12 times and 0.63 times, respectively. The retail portion was subscribed 0.91 times, while the employee segment displayed significant enthusiasm, being subscribed 5.19 times.
Pine Labs IPO details
The Pine Labs IPO is a book-built issue worth ₹3,899.91 crore, comprising a fresh issue of 9.41 crore shares aggregating to ₹2,080 crore and an offer for sale of 8.23 crore shares aggregating to ₹1,819.91 crore.
The IPO price band has been set between ₹210 and ₹221 per share. Retail investors can apply for a minimum of 67 shares in one lot and up to 13 lots. At the upper end of the price band of ₹221 per share, retail investors are required to make a minimum investment of ₹14,807 per lot.
The company plans to utilise the proceeds from the fresh issue to repay debt and fund investments in IT assets, cloud infrastructure, technology development initiatives, and the procurement of digital checkout points.
Additionally, a portion of the funds will be directed toward investments in its subsidiaries, including Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, to support the company’s international expansion efforts.
The Pine Labs IPO allotment is likely to be finalised by Wednesday, November 12, and the shares are scheduled to list on the exchanges on Friday, November 14.
GMP signals muted listing
As of today, the grey market premium (GMP) for the Pine Labs IPO stands at ₹4 per share, suggesting that the stock is likely slightly above its issue price.
Based on this GMP and the upper price band, the ₹226, reflecting a just 1.80%”>estimated listing price of Pine Labs IPO is ₹226, reflecting a just 1.80% premium.
The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.
About Pine Labs
Pine Labs is a technology-driven company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises, and financial institutions. It primarily operates through its Digital Infrastructure & Transaction Platform and Issuing and Acquiring Platform.
The company’s operations have witnessed a turnaround, with robust growth in EBITDA and adjusted EBITDA during the FY23–FY25 period.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
