On June 26, one of the leading companies, Pine Labs, filed its DRHP Draft Red Herring Prospectus to the market regulator SEBI with aim of raising funds via an Initial Public Offering (IPO).
According to the report, the company is planning to raise funds of ₹2,600 crore ($304 million) via a fresh issue and 14.78 crore equity shares via the Offer-for-sale component.
The proceeds raised from the fresh issue will be utilized to repay/prepay the existing debt taken by the company. Some funds will be utilized to invest in subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE.
Pine Labs is also planning to raise funds of ₹520 crore in the pre-IPO placement. If they successfully plan to do so, the funds of ₹520 crore will be reduced from the fresh issue.
Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies are the lead managers of the issue.
Initially, the company was considering filing an IPO worth funds of $1 billion (₹8,300 crore), showcasing a major change in the plan than last year.
Pine Labs, last valued at $5 billion during its 2022 funding round, got approval in April to shift its base from Singapore to India.
During its 2022 funding round, in April, the company received approval to shift its base from Singapore to India.
Founded on May 18, 1998, Pine Labs Limited is one of the leading technology companies that helps businesses go digital with payment and card solutions. They work with shops, brands, companies, and banks in India and other countries like Malaysia, UAE, Singapore, Australia, the U.S., and Africa. The company offers services that will help merchants with digital payments, easy billing system integration, managing rewards, and loyalty programs, providing affordable options like currency conversion.
Pine Labs IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Pine Labs Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹957.92 | ₹1,032.43 | ₹22.62 |
| 2023 | ₹1,327.59 | ₹1,402.39 | ₹56.24 |
| 2024 | ₹1,382.63 | ₹1,622.80 | ₹187.17 |
| December 2024 | ₹1,273.88 | ₹1,238.41 | ₹26.14 |
Pine Labs IPO Valuation – FY2024
Pine Labs IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹(2.23) (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | (9.18)% |
| Net Asset Value (NAV): | ₹24.30 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| One97 Communications Limited | (22.00) | NA | (10.82%) | 209.29 | 9,977.80 Cr. |
| Zaggle Prepaid Ocean Services Limited | 4.06 | 104.76 | 14.11% | 46.98 | 775.60 Cr. |
Objects of the Issue
- Repayment / prepayment, in full or in part, of certain borrowings availed of by our Company and certain of our Subsidiaries;
- Investment in certain of our Subsidiaries, namely Qwikcilver Singapore, Pine Payment Solutions, Malaysia and Pine Labs UAE for expanding our presence outside India;
- Investment in IT assets, expenditure towards cloud infrastructure, procurement of digital check-out points (“DCP”) and technology development initiatives; and
- General corporate purposes and unidentified inorganic acquisitions
IPO Lead Managers aka Merchant Bankers
- Axis Capital Limited
- Morgan Stanley India Company Private Limited
- Citigroup Global Markets India Private Limited
- J.P. Morgan India Private Limited
- Jefferies India Private Limited
