Pine Labs IPO opens today: Should you subscribe or give it a skip?

The initial public offering (IPO) of Pine Labs opens for bidding on Friday, November 07. The company is offering its shares in the range of Rs 210-221 apiece which can be applied for a minimum of 67 equity shares and its multiples thereafter. The issue shall close for bidding on Tuesday, November 11.

Pine Labs to looking to raise a total of Rs 3,899.91 crore via IPO, which includes a fresh share sale of Rs 2,080 crore and an offer-for-sale (OFS) of up to 8,23,48,779 equity shares worth Rs 1,819.91 crore by existing shareholders. The net proceeds shall be utilized towards debt repayment, investment in subsidiaries and IT assets, could infrastructure and general corporate purposes.

Incorporated in 1998, Gurugram-based Pine Labs is a leading Indian merchant commerce platform that provides point-of-sale (PoS) solutions, payment processing, and merchant financing services. Pine Labs empowers businesses of all sizes—from small retailers to large enterprises—with digital payment technologies and value-added services.

Pine Labs raised over Rs 1,753.8 crore from 71 investors via anchor investors as it allocated 7.93 crore equity at Rs 221 apiece. Key names including Morgan Stanley, Nomura, Franklin Templeton, Fundpartner Solutions, Massachusetts Institute of Technology, BNP Paribas, Eastspring Investments, Bandhan MF, Edelweiss, Abakkus Asset Manager and Amundi Funds participated in the anchor book.

Pine Labs reported a net profit of Rs 4.79 crore with a revenue of Rs 653.08 crore for the quarter ended on June 30, 2025. The company clocked a net loss of Rs 145.49 crore, while revenue of Rs 2,327.09 crore for the financial year ended on March 31, 2025. At current valuations, the company shall command a market capitalization of Rs 25,376.65 crore.

Pine Labs has reserved 75 per cent of the net offer qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent shares. Retail investors have an allocation of only 10 per cent in the IPO. Last heard, Pine Labs was commanding a grey market premium of Rs 12 apiece, suggesting a 5 per cent upside for the investors over the upper end of the price band.

Axis Capital, Morgan Stanley India Company, Citigroup Global Markets India, Jefferies India and JP Morgan India is the book running lead manager and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Friday, November 14. Here's what a host of brokerage firms suggest about the IPO of Pine Labs:
 

Arihant Capital Markets

Rating: Avoid

Pine Labs plans to extend its mid-market merchant coverage through UPI-first DCPs, broaden affordability solutions to newer verticals such as healthcare and education, and increase adoption of loyalty and analytics services. It is expanding in Southeast Asia, UAE, Australia, and the US, with these regions’ combined digital payment opportunity projected to grow $3.1–3.2 trillion, said Arihant Capital.

"While Pine Labs stands out as one of India’s most established full-stack fintech infrastructure platforms, its current fundamentals and valuation leave limited room for near-term benefit. However, it remains a loss-making at PAT level, which shows sustained pressure from high employee, technology, and acquisition integration costs," it added with an 'avoid' rating.
 

Angel One

Rating: Neutral

Pine Labs' valuation cannot be meaningfully compared on a P/E basis as it remains loss-making at the net level and on EV/EBITDA its trading at a premium to its listed peers leading to valuation discomfort despite strong sector and company outlook, said Angel One. "Hence, we recommend a 'neutral' rating for investors with a medium to long-term horizon," it said.

Key risks include dependence on merchant and financial partners, intense competition in the fintech space, cybersecurity and technology upgrade challenges, and regulatory uncertainties across markets, Angel One cited as key risks for the issue.
 

IDBI Capital

Rating: Subscribe for long-term

Pine Lab's 'digital infrastructure and transaction platform' powers in-store and online payments, affordability solutions, and value-added services such as dynamic currency conversion and transaction processing. With operations spanning India and international markets, Pine Labs processed Rs 11,424.97 billion in gross transaction value (GTV) across 5.68 billion transactions in FY25, said IDBI Capital.

"Over the years, Pine Labs has expanded organically and through acquisitions — including Qwikcilver, Mosambee, Setu, and Credit+ — to strengthen its ecosystem and address diverse commerce workflows. The issue is trading at EV/sales and EV/Ebitda of 8 times and 82.8 times respectively, based on post-issue capital," it added with a 'subscribe for long-term' rating.
 

Swastika Investmart

Rating: Avoid

Pine Labs is engaged in providing digital payments and related solutions across the e-commerce platform. Although the Government’s Digital India initiative supports future potential, it still faces challenges in achieving stable profitability. The IPO seems aggressively valued, said Swastika Investmart, advising investors to avoid this IPO for now, considering the high valuation and limited short-term visibility.
 

SBI Securities

Rating: Subscribe for long-term

Pine Labs is a Fintech company operating through a network of 9.8 lakh merchants, 716 consumer brands & enterprises and 177 financial institutions in India, Malaysia, Singapore, UAE, Australia, USA and Africa as of June 2025. It has built long-lasting relationships with marquee and is ready to capitalize on the Rs 276 trillion market opportunity by FY29P, said SBI Securities.

"Pine Labs plans to repay debt of Rs 532 crore through the proceeds from the IPO. Its operations have witnessed a turnaround with robust growth in Ebitda and adjusted Ebitda during the FY23-FY25 period. On the back of a robust business model, going forward, we believe the company is well placed to deliver profitable growth," it added with 'subscribe for long-term' rating.
 

BP Equities

Rating: Subscribe

From a valuation standpoint, at the upper end of the price band, the issue is valued at an implied marketcap/sales multiple of 11.2 times based on FY25 revenues, said BP Equities. "Given India’s fast-growing digital payments sector, robust profitability trajectory, efficient capital allocation, and global scaling potential, we recommend a 'subscribe' rating for a medium-to-long term."

Ventura Securities

Rating: Subscribe

The management team at Pine Labs is led by experienced professionals with deep expertise in the FinTech and payments sectors. Their strategic leadership has been a key factor in the company's success, positioning it as a leader in digital payments and payment infrastructure in India and other markets, said Ventura Securities.

"Pine Labs plans to scale its offerings by improving digital payment solutions, extending its market presence in emerging regions, and investing in innovations like affordable payment solutions for micro-merchants in India. Its vision is to remain at the forefront of innovation in the payments and FinTech space, continuing to grow its market share both domestically and internationally," it said with a 'subscribe' rating.
 

SMIFS

Rating: Subscribe

"We recommend subscribing to the issue as a good long-term opportunity, underpinned by Pine Labs’ strong technology backbone, deep ecosystem integration, and focused global expansion strategy, positioning it to capture sustained value from the rapid and structural growth in digital payments across India and key international markets," said SMIFS.
 

Sushil Financial

Rating: Subscribe with caution

Pine Labs has been able to grow the brand, business presence and expertise with innovative technology, strong institutional backup and business model, said Sushil Finance. "The issue is aggressively priced. High risk Investors seeking long term fintech exposure may subscribe to the issue," it said.
 

Lakshmishree Investment & Securities

Rating: Subscribe for long-term

Pine Labs is a leading global digital payments and merchant commerce platform, offering diversified solutions across India, Southeast Asia, and the Middle East. Pine Labs shows a critical shift towards sustainability. It reported its first-ever quarterly net profit of Rs 4.8 Cr in Q1 FY26, underpinned by robust adjusted Ebitda growth and strong institutional support, said Lakshmishree.

Pine Labs has a very large OFS component, suggesting that the primary motive of the offering is to give liquidity to existing stakeholders. IPO proceeds will be strategically deployed for debt reduction, IT infrastructure investment, and international expansion. Pine Labs is strongly positioned to capitalize on global digital consumption growth. We recommend a 'subscribe for very long-term' rating," it added.
 

Kunvarji Wealth Solutions

Rating: Subscribe with caution

"We recommend subscribing to this IPO for risk-seeking investors who may consider allocating funds with a medium- to long-term investment horizon. While the issue appears to be aggressively priced. The company is a leading player in providing digital payments and related solutions across the e-commerce platform," said Kunvarji Wealth Solutions.