By the Middle of February, Pine Labs will Submit its IPO Draft Documents
According to reports, Pine Labs, a prominent fintech company, is preparing to submit its IPO draft papers by the middle of next month. A media site reported that the company aims to list on the bourses as soon as possible after finishing all the procedures required to move its base to India. The National Company Law Tribunal (NCLT) granted the corporation the first set of permissions in August of last year to combine its Indian subsidiary with its Singaporean entity. Five investment banks were reportedly chosen by the Delhi-NCR-based firm in November to serve as advisors for its $1 billion (about INR 8,424.7 crore) IPO. The company is reportedly looking for a $6 billion valuation. Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies were among these banks.
A slew of venture capital, private equity, and international funds, including Temasek, MasterCard, Paypal Ventures, Alpha Wave Global, and Peak XV, backed Pine Labs. About 20% of the business may be sold by current investors. The offer might also be used by Pine Labs to raise some primary capital. Since 2009, Pine Labs has raised over $1.32 billion in 14 rounds, according to Tracxn.
Pine Labs May Opt for Pre-IPO Funding Round
The company may choose to pursue a pre-IPO funding round prior to its IPO, which could result in a change in valuations and size, as no definitive decision has been made. It's interesting to note that this is the business's second attempt to list on a stock exchange. It submitted IPO paperwork for a $500 million public offering to the US Securities and Exchange Commission back in 2022. However, because of the poor market attitude, it postponed the preparations for the IPO. Pine Labs was established in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay. The company provides retailers with digital payment solutions, including point-of-sale (PoS) devices and payment systems. Additionally, it provides businesses with cashback, rewards, and pay-later options.
Indian Startups and their IPO Dream
Pine Labs' valuation was reduced by 8.5% from $3.8 billion in January 2024 to $3.5 billion at the end of April 2024 by US-based fund manager Invesco, who also owns stock in the company. Approximately 18 firms, including Flipkart, PhysicsWallah, Ather Energy, and Zepto, are preparing to list on Indian stock exchanges, according to a number of media reports. With plans to list in the upcoming fiscal year, the board of logistics giant Shiprocket passed a resolution on January 27 to turn the business from a private to a public corporation. At a valuation of roughly $2.8 billion, IPO-bound Infra. Market raised INR 1,050 Cr in its pre-IPO round last week. Even Capillary Technologies has resumed its IPO preparations, and by June of this year, it is anticipated to submit the draft documents for a $200 million (INR 1,700 cr) IPO.
Nitin Konde
