Last Updated:
Pine Labs IPO- You can invest money in Pine Labs Ltd IPO till 11th November. The company has fixed the price band of its shares at ₹ 210 to ₹ 221 per share. Pine Labs mainly provides digital payment services to merchants and brands.
New Delhi. The IPO of fintech company Pine Labs opened yesterday i.e. on Friday. This IPO neither got much support from investors on the first day nor could the shares issued in the gray market do any good. It was subscribed only 13 percent on the first day. Investors bid for 1.29 crore shares against the 9.78 crore shares offered. The GMP of Pine Lab IPO is also continuously falling and it has now fallen to Rs 5. On November 3, GMP was Rs 60. On the first day, the quota of Qualified Institutional Buyers (QIB) was filled only 2%, the share of Non-Institutional Investors (NII) was subscribed 7% and the share of retail investors was filled 54%.
You can invest money in Pine Labs Ltd IPO till 11th November. The company has fixed the price band of its shares at ₹ 210 to ₹ 221 per share. Pine Labs mainly provides digital payment services to merchants and brands. The company provides point of sale (POS) machines, online payment solutions and digital transaction platforms.
The target is to raise Rs 3900 crore
The company has set a target of raising Rs 3900 crore from Pine Labs IPO. It is a mixture of fresh issue (₹2,080 crore) and offer for sale (OFS). Pine Labs has reduced its IPO size. The fresh issue was reduced from ₹2,600 crore to ₹2,080 crore. Whereas the Offer for Sale (OFS) has been reduced from 14.78 crore to 8.23 crore shares.
Promoters and old investors benefit a lot
The old investors and promoters of the company will benefit the most from this IPO. Peak XV Partners (earlier Sequoia Capital India) holds about 20% stake in the company. It was purchased at an average price of ₹ 5.60 per share. Earlier the value of this stake was around ₹ 121 crore, now it has increased to ₹ 4,775 crore.
The company’s CEO and MD Amrish Rau holds 2.47% stake. He had bought the shares at the rate of ₹6.62 per share. Now the value of his stake has reached around ₹ 584 crore. Co-founder Lokveer Kapoor had bought the shares for just 50 paise per share. Now the value of his stake has reached approximately ₹ 461 crore.
Pine Labs IPO GMP is falling
The gray market price of Pine Labs IPO is continuously falling. According to IPOwatch.in, a gray market tracking website, the shares in the issue are priced at a premium of Rs 5 in the gray market. On October 3, the GMP of Pine Labs shares was Rs 60. Once it had crossed Rs 300.
(Disclaimer: Investment in IPO is subject to market risks. If you want to invest money in IPO, then first consult a certified investment advisor. StuffUnknownwill not be responsible for any profit or loss you may incur.)
