(Nov 14): Pine Labs Ltd jumped in its Mumbai trading debut on Friday after the Indian payment technology provider wrapped up its 39 billion rupees ($571.6 million)) initial public offering (IPO), reflecting strong investor demand for the country’s fintech sector.
The company’s shares surged as much as 12% to 248 rupees, compared with an issue price of 221 rupees, giving the company a market value of US$3.2 billion ($4.16 billion).
Pine Labs concluded its bidding process on Tuesday, attracting bids for about 240.94 million shares — more than double the 97.9 million on offer.
The first-day reaction to Pine Labs, backed by Mastercard Inc and PayPal Holdings Inc, offers an early read on investor sentiment towards India’s fintech and digitisation drive, and the role the company might play in it.
Recent Indian listings have delivered mixed results as investors fretted about valuations. Pine Labs’ strong debut could ease concerns about a broader slowdown in the IPO market. Eyewear retailer Lenskart Solutions Ltd fell as much as 12% after its listing on Monday, while Billionbrains Garage Ventures Ltd, the parent of India’s top discount broker Groww, surged 31% on debut on Wednesday.
Pine Labs has operations throughout Asia, including Singapore and Malaysia, offering merchant payment systems, including point-of-sale terminals. It reported a net loss of 1.45 billion rupees on revenue of 22.74 billion rupees for the fiscal year ended March 2025, according to its filings.
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The company’s IPO pricing is causing “valuation discomfort despite a strong sector outlook,” local brokerage Angel One said in a note. SBI Securities, however, sees it well-positioned to deliver profits, given a “robust business model”.
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