Pine labs IPO review

 Information about Pine Labs’ IPO:

1. Year of Starting Business / Foundation Year

- *1998*

2. HQ or Founder State

- *HQ: Noida, Uttar Pradesh, India*

- Founded by Lokvir Kapoor and B. Amrish Rau.

3. Industry of Business

- *Fintech (Digital Payments and Commerce Solutions)*

4. Main Verticals of Business / Major Products

- *Digital Infrastructure & Transaction Platform* (70% revenue):

    - API-enabled UPI payments, eKYC, bill collection.

- *Issuing & Acquiring Platform* (30% revenue):

    - Prepaid products (gift cards, forex cards), merchant POS solutions.

- *Services*: Payment processing, subscription management, fraud checks.

5. Revenue Breakdown (FY25)

- *Segment-wise*:

    - Digital Infrastructure: ₹1,589 Cr (70%)

    - Issuing & Acquiring: ₹688 Cr (30%)

- *Geography*:

    - India: 85%

    - International: 15% (UAE, Malaysia, Singapore)

6. Major Good Points

- Strong market leadership in India’s digital payments.

- Diversified client base (D-Mart, Amazon, LG, SBI).

- Scalable tech platform.

- Turned PAT-positive in Q1 FY26.

7. Major Drawbacks

- High valuation (10.3x EV/Revenue).

- Intense competition (Paytm, PhonePe).

- Regulatory risks.

- Debt: ₹888.74 Cr (FY25).

8. Major Strengths

- Robust growth (19% CAGR FY23–FY25).

- Expanding international footprint.

- Reduced ESOP costs boosting profitability.

9. Major Weaknesses

- Limited profitability history.

- High customer acquisition costs.

- Dependency on India’s digitalization pace.

10. Financial Information

Metric FY23 FY24 FY25 Growth

Revenue (Cr) | ₹1,690.44 | ₹1,824.16 | ₹2,327.09 | +28.5%

| *PAT (Cr)* | ₹265.15 | ₹341.90 | ₹145.49 | -57.5% |

| *PAT Margin* | 15.7% | 18.7% | 6.3% | - |

| *EBITDA (Cr)* | ₹208.21 | ₹288.39 | ₹365.72 | +26.8% |

| *EBITDA Margin*| 12.3% | 15.8% | 15.7% | - |

| *Debt (Cr)* | ₹532.92 | ₹829.49 | ₹888.74 | +6.9% |

| *D/E Ratio* | 0.56 | 0.41 | 0.38 | - |

11. Valuation Parameters

- *ROE*: -4.15% (FY25)

- *ROCE*: - NA

- *RONW*: -4.15% (FY25)

- *P/E Ratio*: N/A (Losses)

- *P/B Ratio*: 9.85x (₹221/share)

- *Peers (FY25)*:

    - *Paytm*: P/E = N/A, ROE = -4.69%

    - *Zaggle*: P/E = 31.6x, ROE = 9.64%

12. Promoter Holding

- *Pre-IPO*: No promoters (professionally managed).

- *Post-IPO*: Major investors:

    - Peak XV: 20.25% → 16.2%

    - PayPal: 5.98% → 4.8%

    - Temasek: 7.06% → 5.6%

13. IPO Details

- *Type*: Fresh Issue + OFS

- *Size*: ₹3,899.91 Cr

    - Fresh Issue: ₹2,080 Cr (53%)

    - OFS: ₹1,819.9 Cr (47%)

- *Price Band*: ₹210–₹221

- *Listing*: BSE & NSE (Nov 14, 2025)

14. Brokerage Reviews

- *Subscribe*:

    - SBI Securities, Anand Rathi, Sharekhan.

- *Avoid*:

    - Swastika Investmart, DRChoksey.

- *Neutral*: ICICIdirect, Reliance Securities.

- *Valuation concerns*: " "pioneered by SBI Securities, but high valuation risks".

#IPO #Review #PineLabs #Apply #Avoid #Rating #Dhaval