Shares of fintech firm Pine Labs are expected to make a flat debut on the stock exchanges on Friday, as per market analysts.
The company’s initial public offering (IPO) received 2.46 times subscription on the final day of bidding on Tuesday. Earlier, the Noida-based firm had raised Rs 1,754 crore from anchor investors.
Pine Labs had fixed a price band of Rs 210–221 per share for its IPO, aiming for a valuation of over Rs 25,300 crore.
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.
Proceeds from the fresh issue will be used to repay debt, invest in IT assets, and fund expenditure towards cloud infrastructure, technology development, and digital checkout systems. The company also plans to invest in subsidiaries, including Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, to expand its international presence.
Pine Labs, headquartered in Noida, operates in the digital payments and merchant solutions space, serving retailers, consumer brands, enterprises, and financial institutions. Its platform supports transactions and payment processing in India and several overseas markets, including Malaysia, the UAE, Singapore, Australia, the US, and parts of Africa.
The company competes with players such as Paytm, Razorpay, Infibeam, PayU Payments, and PhonePe in India, and with global firms like Adyen, Shopify, and Block in international markets.
Pine Labs shares are scheduled to list on the stock exchanges on November 14.
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