Pine Labs IPO: GMP hovers around 5%; should you hit buy button or give it a miss? What analysts say
Pine Labs has opened its initial public offering (IPO) for public subscription from Friday, aiming to raise Rs 3,900 crore. The three-day issue will close on November 11.The IPO consists of two components: a fresh issue of Rs 2,080 crore and an offer for sale worth Rs 1,820 crore. Shares are being offered in a price range of Rs 210 to Rs 221 per equity share, ET reported.In the unofficial market, the issue is drawing interest with a grey market premium hovering around 5% before listing.The stock is scheduled to list on both the BSE and NSE, and the tentative listing date is set for November 14.
Outlook: Should you subscribe or not — Here’s what analysts suggest
A 5% grey market premium suggests limited listing gains in the near term. However, market watchers say that the company’s execution in scaling international operations and sustaining operating leverage will determine its long-term performance.SBI Securities, according to ET, has assigned a ‘Subscribe for long-term investment’ rating to the issue. The brokerage highlighted the company’s business scale, profitability improvement and its potential to benefit from the expanding digital payments ecosystem.The note from the brokerage emphasises the firm’s strong client and partner base, which includes Croma, HDFC Bank, LG Electronics and Apollo Pharmacy. With India’s digital payment flows expected to reach Rs 276 trillion by FY29, analysts believe Pine Labs is positioned to capture a meaningful share of this market.
Financial figures:
For FY25, Pine Labs posted revenue of Rs 2,274 crore, reflecting a 28% increase over the previous year. Adjusted EBITDA rose sharply to Rs 357 crore in FY25 from Rs 158 crore in FY24, an improvement that signals better operating efficiency. Losses have narrowed significantly as well, with adjusted PAT coming down to Rs 109 crore from Rs 342 crore a year earlier.The company reported positive EBITDA margins of 9.6% and adjusted EBITDA margins of 15.7 percent.At the upper end of the price band, the valuation works out to 82.8 times EV/EBITDA and 8 times EV/Sales on a post-issue basis.The company intends to utilise Rs 532 crore from the issue proceeds to repay borrowings and allocate Rs 790 crore towards technology enhancement, cloud infrastructure expansion and other growth initiatives.
About Pine Labs:
Pine Labs, which started with point-of-sale services, now positions itself as a full-scale merchant commerce and fintech platform. Its offerings include digital payment acceptance, issuing solutions, and merchant financing products.The company operates across India, Southeast Asia and the Middle East, and works with more than 9.8 lakh merchants. It also has relationships with 177 financial institutions as of June 2025. The platform is built on a cloud-based, API-first architecture, enabling quick integration for retail chains, brands and financial partners.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
