Pine Labs IPO: Fintech Giant Plans Rs 2,600 Cr Public Issue - Key Details Here

The Fintech unicorn company Pine Labs has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on June 26.

According to a Bloomberg report, the company is planning to raise up to Rs 2,600 crore ($304 million) through a fresh issue of shares, as existing investors, including PayPal, Mastercard, Peak XV Partners, and MacRitchie Investments, will offload up to 14.78 crore (147.8 million) shares.

Where Does Pine Labs Plan To Use The Funds?

According to the DRHP, the proceeds received from the fresh issue will be used to repay debt and invest in its subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, as well as Pine Labs UAE.

Additionally, the company is also considering a pre-IPO placement of shares worth up to Rs 520 crore and the offering is being managed by Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies.

This highlights the company's sharp pivot from its earlier deliberations since last year, when Pine Labs was reportedly weighing a $1 billion (Rs 8,300 crore) IPO.

The company which was last valued at $5 billion has also received the approval to move its domicile from Singapore to India in April.

PeakXV To Offload Chunk In Pine Labs

PeakXV which was formerly known as Sequoia Capital India is going to sell the largest portion of shares in the upcoming IPO of Pine Labs.

The venture capital firm, through its affiliate Pine Investment Holdings Pte. Ltd., is offering to offload up to 3.89 crore shares in the Offer for Sale (OFS), which amounts to nearly 26.4% of the total shares on offer.

This is one of the most significant exits as it was one of the earliest and most prominent backers of the firm.

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