The shares of Pine Labs are set to make their much-awaited market debut tomorrow, on November 14. The Rs 3,900-crore IPO of the company was subscribed nearly 2.5 times its offer size between November 7 and November 11.
Despite being subscribed more than two times its offer size, with retail investors fully booking their reserved portion, the grey market estimates for the IPO signal towards a tepid listing.
Pine Labs IPO GMP
Ahead of listing, the shares of the company were trading with nearly three percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The GMP has increased from the 0.45 percent quoted by the site on the day the IPO closed for public bidding, but is less than the 16 percent quoted earlier this month.
According to IPO Watch, the shares of the company were trading with nearly 3 percent GMP over the issue price in the grey market, ahead of listing.
Pine Labs share listing: Should you buy, sell or hold?
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, said the IPO appeared "slightly priced on the higher side," which was reflected in the subscription numbers. "The Employees’ category witnessed the strongest response with 7.7 times subscription, followed by Qualified Institutional Buyers (excluding anchors) at 4 times, while other investor segments showed muted interest," he said.
Tapse added that the shares are likely to list flat given the moderate subscription trend.
"Considering Pine Labs’ leadership in its segment and focus on technology-driven, high-margin solutions, we recommend that only risk-taking investors hold the stock with a long-term view. New investors may consider waiting for post-listing corrections as a potential entry point," he noted.
Pine Labs, based out of Noida, operates across in-store point-of-sale terminals, online payment gateways, and prepaid and gift card solutions, serving millions of merchants globally.
The price band for the IPO was set between Rs 210-221 per share, valuing the company at approximately Rs 25,377 crore at the upper end. Investors can bid for a minimum of 67 shares, requiring an investment of Rs 14,807 at the upper price band and in multiples thereafter.
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