Pine Labs shares off to a firm start, list at 9.50% premium over IPO price in Indian stock market | Stock Market News

Pine Labs ipo listing:Shares of fintech firm Pine Labs were off to a solid start on Dalal Street despite a tepid response to its initial public offering (IPO) as they listed at a nearly 10% premium on the exchanges today, November 14.

Pine Labs’ share price debuted at ₹242 on the BSE and the National Stock Exchange, a premium of ₹21 or 9.50% over the IPO price of ₹221.

The listing defied expectations as the grey market premium (GMP) for Pine Labs was at ₹5.5 apiece, signalling a listing pop of 2.5%.

Pine Labs IPO Details

PayPal-backed Pine Labs attracted just 2.46 times subscription on the final day of share sale on Tuesday, with the qualified institutional buyer (QIB) quota booked the most.

The QIB part fetched four times subscription, while the quota for retail individual investors got subscribed 1.22 times. However, only 30% of the portion for non-institutional investors was subscribed.

Recent IPO listings have delivered mixed results as investors remained concerned about valuations. Eyewear retailer Lenskart Solutions fell as much as 12% after its listing on Monday, while Billionbrains Garage Ventures, the parent of India’s top discount broker Groww, surged 31% on debut Wednesday.

Pine Labs had fixed a price band of ₹210-221 per share for its IPO, targeting a valuation of over ₹25,300 crore.

The IPO comprised a fresh issue of shares worth ₹2,080 crore and an offer for sale (OFS) of over 8.23 crore equity shares.

Proceeds from the fresh issue will be used by the company to repay debt, for investment in IT assets, expenditure towards cloud infrastructure, technology development initiatives and procurement of digital checkout points.

The company will use funds for investment in its subsidiaries, such as Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE, for expanding the presence outside the country.

Noida-based Pine Labs is a technology company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises, and financial institutions.

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