Summary of this article
Pine Labs shares made a decent debut on D-street
Pine Labs shares listed at Rs 242 apiece with a premium of 9.5 per cent
Pine Labs IPO Listing Price: Shares of Indian fintech company, Pine Labs Ltd made their D-street debut on November 14. Shares of the multi category food retailer made a decent debut on the exchanges. Pine Labs shares listed with nearly 10 per cent premium compared to the issue price.
Pine Labs Share Price
Pine Labs shares made their debut at Rs 242 per share with gains of 9.5 per cent against the issue price of Rs 221 per share. Pine Labs shares listed at Rs 242 apiece on the BSE as well
Pine Labs IPO Listing Gains
Retail investors who were allotted a minimum of one lot or 67 shares would have gained at least Rs 1,407 (Rs 242 - Rs 221 x 67). As many as 4.79 lakh shares of Pine Labs Ltd changed hands on the NSE and the total market capitalisation of the company stood at Rs 27,788.29 crore.
Pine Labs IPO: Details
Pine Labs Ltd raised Rs 3,899.91 crore through its public issue. Pine Labs’ public issue consisted of a fresh issuance of 94.1 million shares aggregating to Rs 2,080 crore and an offer for sale of 82.3 million shares aggregating to Rs 1,819.91 crore. Pine Labs IPO price band was set at Rs 210 to Rs 221 per share.
The minimum lot size for application for retail investors was fixed at 1 lot comprising 67 shares, which aggregated to an investment of Rs 14,807. Pine Labs IPO saw weak demand in its three-day subscription window. Pine Labs IPO was subscribed 2.46 times across categories. As many as 240.9 million shares of Pine Labs were bid for against the 97.89 million shares offered for subscription.
In the three-day bidding window, qualified institutional bidders led the demand for Pine Labs Ltd shares, booking their quota 4 times. On the other hand, non-institutional investors booked their quota 30 per cent and retail investors booked their quota 1.22 times. Employees of Pine Labs Ltd subscribed their quota 7.35 times in the three-day bidding window.
Pine Labs IPO: Objective
Pine Labs Ltd aims to use the money raised via the public issue for repayment or prepayment of borrowings availed of by the company and its subsidiaries. The company will also make an investment in its subsidiaries Qwikcilver Singapore, Pine Payment Solutions, Malaysia and Pine Labs UAE. The proceeds will also be used for investment in IT assets, expenditure towards cloud infrastructure, technology development initiatives and procurement of DCPs. A part of the proceeds will also be used for general corporate purposes and acquisitions.
Pine Labs: Business Model
Pine Labs provides a merchant-focused payments and lending platform. The company generates revenue through the transactions conducted using its platform. The company generates revenue in the form of fees on payments processed through its infrastructure along with subscriptions, device sales, value-added services, and partnerships.
Pine Labs: Peers
Pine Labs' primary competitors include other major Indian fintech players, global payment giants, and specialized Point of Sale (POS) system providers. The listed peers of the company include One 97 Communications Ltd and Zaggle Prepaid Ocean Services Ltd. One of its major international competitors includes Adyen N.V. (ADYEN). Some of the unlisted competitors of the company include Razorpay and Stripe.
