Pine Labs IPO Day 2: Subscription Cautious, GMP Slides Further
The Initial Public Offering (IPO) of Pine Labs, a prominent merchant commerce platform, is witnessing a lukewarm response as it enters its second day. The IPO, which opened on November 7, 2025, has so far been subscribed 15%. The subscription period will remain open until November 11, 2025.
Subscription Details
On the first day, the IPO saw a subscription of 13%, primarily driven by strong interest from employees, whose quota was nearly three times oversubscribed. As of today, the overall subscription stands at 15%.
The breakdown of subscriptions across investor categories reveals a cautious approach from institutional and non-institutional investors:
- Qualified Institutional Buyers (QIBs): Engagement remains low, with a subscription of just 2% on the first day.
- Non-Institutional Investors (NIIs): This category has shown slightly better interest, subscribing to 7% of their quota on Day 1.
- Retail Investors: Retail participation has been relatively stronger, with approximately 30% subscription recorded on the first day.
- Employees: The employee quota has been fully subscribed almost three times over.
Grey Market Premium (GMP) Trends
The grey market premium (GMP) for the Pine Labs IPO has been on a declining trend, indicating softening investor sentiment. The GMP has fallen to ₹4. This is a significant drop from earlier this month when the GMP was ₹60 on November 1, before declining to ₹35 by November 3, ₹22 by November 4, and ₹17 by November 5.
Offer Details
The Pine Labs IPO aims to raise ₹3,899.91 crore through a combination of a fresh issue and an offer for sale. The IPO comprises a fresh issue of 9.41 crore shares, aggregating to ₹2,080 crore, and an offer for sale (OFS) of 8.23 crore shares, amounting to ₹1,819.91 crore. The price band for the IPO has been fixed at ₹210 to ₹221 per share, with a lot size of 67 shares. At the upper end of the price band, the IPO values Pine Labs at approximately ₹25,300 crore.
A portion of the IPO is reserved for different investor categories:
- 75% of the shares are allocated for Qualified Institutional Buyers (QIB).
- 15% for Non-Institutional Investors (NII).
- 10% of the total offer is reserved for Retail Investors.
- Equity shares valued up to ₹25 million are reserved for employees, who are offered a discount of ₹21 per equity share.
Objectives of the IPO
Pine Labs intends to utilize the net proceeds from the IPO for several purposes:
- Repayment or prepayment of certain borrowings.
- Investment in subsidiaries to expand presence outside India.
- Investment in IT assets, cloud infrastructure, and technology development.
- General corporate purposes and unidentified inorganic acquisitions.
Market Debut
The shares of Pine Labs are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date is set for November 14, 2025. The basis of allotment is expected to be finalized on November 12, 2025, with refunds initiated on November 13, 2025. Allotted shares are also expected to be credited to demat accounts on November 13, 2025.
Expert Opinion
IDBI Capital recommends subscribing to the IPO for the long term. SBICAP Securities notes Pine Labs' established relationships with major clients and its potential to capitalize on the growing market opportunity. The firm has demonstrated strong revenue and EBITDA growth in recent years and intends to use IPO proceeds to reduce debt.
Factors to Consider
Investors should note the declining GMP, which signals a need for caution. While Pine Labs has growth potential, the IPO is aggressively priced.
