Business Profile of Pine Labs Limited
Pine Labs was founded in 1998, it is one of the growing Indian merchant platform which provide service such as payment processing, point-of-sale (POS) and merchant financing. Pine labs have headquartered in Noida, India and it empowers all businesses from small retailer to large enterprises through digital payment technologies and value added services. The key offering of company includes Smart POS Devices, Buy Now Pay Later (BPNL), Merchant Financing, E-commerce and Online Payment Tools and Loyalty & Gift Solutions. The company served big consumer brands such as Amazon Pay, LG Electronics, Flipkart Internet private limited and Redington. HDFC Bank, Axis Bank and ICICI Bank are under financial institutions and company had 915,731 merchants as of Dec 31, 2024. A card-based payment solution has evolved by company which play important role in cashless, digitally empowered economy of country.
Objective of Pine Labs IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 1.00 each aggregating up to ₹ 26,000.00 millions and OFS consists 147,822,225 shares at face value of ₨ 1.00 each aggregating up to ₨ XXXX millions. There are fresh shares issues and OFS by company and main objective of company is funding repayment, investment in subsidiary and general corporate expenses.
Details of Pine Labs IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹1.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ XXXX million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 26,000.00 million | |
| Offer For Sale | Up to 147,822,225 Equity Shares |
| Aggregating up to ₨ XXXX million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Pine Labs Limited IPO: Issue Price & Size
The issue price of Pine Labs Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ XXXX million at the price of ₨XXXX.
Launch Date of Pine Labs IPO
The IPO opening date of PINE LABS LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Pine Labs Limited
| Particular (Rs in Millions) | 31 Mar 2024 |
31 Mar 2023 |
31 Mar 2022 |
| Income | |||
| Revenue from operations | 13,410.14 | 12,907.32 | 9,339.83 |
| Other income | 416.16 | 368.54 | 239.38 |
| Total income | 13,826.30 | 13,275.86 | 9,579.21 |
| Expenses | |||
| Transaction and related costs | 1,772.68 | 1,658.76 | 1365.37 |
| Purchases of stock – in – trade | 426.80 | 344.49 | 355.87 |
| Changes in inventories of stock – in – trade | (10.60) | (73.95) | (80.75) |
| Employee benefits expense | 6,253.50 | 6,066.70 | 4,481.68 |
| Finance costs | 576.46 | 335.66 | 236.67 |
| Depreciation and amortisation expenses | 2,660.70 | 2,308.43 | 1,886.85 |
| Impairment of non – current assets | 617.63 | 79.95 | – |
| Impairment losses on financial assets and contract assets | 167.79 | 165.98 | 116.59 |
| Other expenses | 3,763.04 | 3,137.87 | 1,962.00 |
| Total expenses | 16,228.00 | 14,023.89 | 10,324.28 |
| Profit / ( Loss ) before tax | (2,401.70) | (748.03) | (745.07) |
| Tax expenses | |||
| Current tax | – | – | 6.92 |
| Deferred tax | (530.00) | (185.60) | (525.81) |
| Total tax expense / ( credit ) | (530.00) | (185.60) | (518.89) |
| Profit / ( Loss ) for the period / year | (1,871.70) | (562.43) | (226.18) |
Key financial ratios of Pine Labs Limited
| Operational KPIs | 2024 | 2023 | 2022 | |
| Platform Gross Transaction Value | billion | 3.966.69 | 3,502.80 | 2,194.00 |
| Issuing and Acquiring Platform GTV | billion | 285.28 | 256.01 | 224.10 |
| Number of Transactions | billions | 2.45 | 2.28 | 2.09 |
| Number of Merchants | thousands | 270.42 | 274.38 | 232.25 |
| Prepaid Cards Issued | millions | 497.24 | 474.72 | 653.24 |
| Revenue from operations | million | 13,410.14 | 12.907.32 | 9.339.83 |
| Issuing and Acquiring Platform Revenue | million | 4,359.53 | 4.356.10 | 3,339.13 |
| Percentage of revenue from operations from outside India | % | 2.59 | 2.08 | 1.90 |
| Net Profit Margin | % | -13.96 | -4.36 | -2.42 |
| Operating Profit Margin | % | -3.26 | -0.33 | 2.79 |
| EBITDA Margin | % | 9.67 | 10.98 | 12.35 |
| Return on Total Income | % | -13.54 | -4.24 | -2.36 |
Promoters & Shareholding
As of date, according to the DRHP filed with SEBI promoters and promoter group have no shareholding in company.
| Name | Number of Equity Shares | % Equity Shares |
| Promoters & Promoter Group | – | – |
| Total ( A ) | – | – |
| Public | 447,069,736 | 100% |
| Total ( B ) | 447,069,736 | 100% |
| Total (A+B) | 447,069,736 | 100% |
Should You Subscribe To Pine Labs IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Pine Labs IPO
Scaling platform
The company provides a wide range of services within its digital infrastructure and Transaction platform and Acquiring platform. Pine labs were largest player in closed and semi-closed loop gift card issuances by transaction value in Fiscal 2024, according to Redseer Report. It is also the largest digital affordability solution enablers at DCPs in terms of total processed value, among the top five in-store digital platforms. As of December 31, 2024, company had 915,731 merchants, 666 consumer brands and enterprises, and 164 financial institutions that use company platform to transact quickly and securely and manage their businesses.
Deep partnerships with large merchants
Pine labs have in India and an emerging presence internationally across its ecosystem partners. As of December 31, 2024, company served an ecosystem spanning across merchants in key verticals such as department stores and retailers, supermarkets, e-commerce, restaurants, grocery, lifestyle, consumer electronics, healthcare, travel and hospitality as well as financial institutions and banks, financial technology companies, and new-age technology companies. Through their suite of offerings, company has developed deep partnerships with marquee consumer brands and enterprises such as, Croma, and HDFC Bank, among others.
Cloud-based flexible technology
The technology stack of company purpose built to support the scale, speed and security required in digital commerce. The company technology stack leverages a cloud-native infrastructure that facilitates high availability and elastic scalability, enabling the platform to handle substantial transaction volumes. The API-first design promotes rapid integration, interoperability, and ease of customization, making it simple for our ecosystem partners to adopt and build upon. Its modular architecture allows for agile deployment of new features and services, while maintaining operational resilience.
Ability to innovate new solutions and features
Pine labs have successfully introduced a wide suite of commerce solutions through innovations and opportunistic inorganic acquisitions. The ability of company consistently innovates and launches new solutions and features are driven by its deep understanding of our ecosystem partner needs and our purpose-built technology stack. The company platform facilitates payments by integrating with merchant software. Pine labs expanded its capabilities by adding their Affordability Solutions and prepaid distribution business aimed to improve affordability for consumers, increase volumes for credit partners, and help consumer brands and enterprises grow.
Risk Factors of Pine Labs IPO
Persistent negative cash flows
The company had negative cash flow from operations in past recent years. The net cash generating from operating activities in Fiscal Year 2024 was ₹ 355.00 million according to company consolidated financial information. Pine labs ltd. are not able to generate sufficient cash flows from operations, company required to deploy its cash on hand or seek additional debt or equity financing to ensure that they have sufficient working capital for day to day operations. The company may continue to have negative cash flows from operations as they continue expanding its operations.
Difficult to retain existing customers
The success of business depends on company ability to retain and grow a diversified customer base, comprising merchants, consumer brands and enterprises, and financial institution partners on its platform. If company customers and potential customers are not satisfied with, among other things, the solutions they offer, the scale of their ecosystem partnerships or the strength, security, adaptability and flexibility of company technology platform, in general or relative to its competitors, and then customers may choose not to partner with company.
RBI regulation risk
The operations of company are subject to regulation, oversight and inspection by the Reserve Bank of India (“RBI”) and the Reserve Bank Information Technology Private Limited (“ReBIT”). The company is licensed payment aggregator, is subject to the Payment and Settlement Systems Act. This include includes meeting rigorous criteria and guidelines related to capital requirements, security standards, operational efficiency, merchant on boarding, outsourcing norms, and data storage. Any adverse observations, proceedings or notices from the RBI or ReBIT may adversely affect company business, financial condition, results of operations and prospects.
Highly competitive industry
The company operates in a highly competitive industry and dynamic industry. As emerging technologies and new companies continue to enter the marketplace, competition may intensify. Established financial incumbents with extensive consumer and merchant bases are also innovating to compete with company platform. The inability to compete successfully would materially and adversely affect company business, financial condition and results of operations.
Pine Labs IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Pine Labs Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
