Pine Labs takes a steep valuation cut to $2.7 billion as it shrinks IPO size
01 Nov 2025, 05:14 PMThe IPO, set to open between 7 and 11 November, is at a similar timing when another fintech major Groww is planning to go public at around $7-8 billion valuation.
Arti Singh
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Payments major Pine Labs has cut the size of its upcoming initial public offering (IPO), which will comprise a fresh issue of up to Rs 2,080 crore and offer for sale (OFS) of up to 8.23 crore shares valued at Rs 1,820 crore by existing shareholders, according to its updated prospectus.
The price band is fixed at Rs 210-221 per equity share, giving the fintech major a valuation of $2.7 billion. This is lower than the valuation of $5-6 billion the company was chasing.
Its valuation was $5 billion when it had last raised funding from Alpha Wave Global in 2022. This IPO is going to be a non-event for Alpha Wave as it is not offloading any stake.
As per its DRHP, which was filed in June, the IPO was to comprise a fresh issue of up to Rs 2,600 crore and an OFS of up to 14.78 crore shares.
The IPO, set to open between 7 and 11 November – similar timing when another fintech major Groww is planning to go public at around $7-8 billion valuation.
An Important Read: In July, The Head and Tale did a detailed dissection of Pine Labs' IPO papers and the company’s business model.
Most investors have reduced the number of shares they would sell via the OFS. The biggest reduction came from Peak XV Partners Pine Investment Holdings, which has cut its OFS size to 2.3 crore from 3.8 crore in the DRHP.
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MW XO Digital Finance Fund – which was part of selling shareholder in DRHP – will not be selling any shares via the OFS. However, Sofina Ventures plans to sell 20 lakh shares, as per RHP.
Pine Labs plans to use Rs 532 crore from the IPO proceeds for repayment/ prepayment of borrowings availed by it and its subsidiaries – as compared to Rs 870 crore mentioned in DRHP.
The company's CEO Amrish Rau recieved 2.31 crore stock options as of June 2025, post June 2025 some 1.1 crore options were added, bringing his total to 3.41 crore. Rau's, who holds 2.47% in Pine Labs, shares value is Rs 584 crore.
At 20.25% stake, Peak XV, which bought the shares at Rs 5.6 each, is sitting at a valuation of Rs 4,811 crore. If the company lists at the said price of Rs 221 per share, then Peak XV will make some Rs 508 crore in this IPO.
And, at 1.96% stake, Pine Labs' co-founder Lokvir Kapoor's shares are worth Rs 466 crore. He acquired the shares at an average of 0.49 paise per share.
Pine Labs' operating revenue stood at Rs 616 crore during Q1 FY26 from Rs 522.4 crore in Q1 FY25. The company posted a small profit of Rs 4.8 crore in Q1 FY26 from a net loss of Rs 27.9 crore reported in the year-ago quarter.
Interestingly, the company has used the "proforma" financials, as mentioned in the DRHP, as the "restated" one in the RHP. To understand the proforma result, you can read the detailed dissection of its DRPH mentioned above.
The author is Founder and Editor of The Head and Tale. She can be reached at
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