The pattern of early investors and promoters reaping massive gains while retail investors face potential losses has continued with Pine Labs Ltd’s IPO pricing. The merchant-commerce company has announced a price band of Rs 210–221 per share, valuing the firm at roughly Rs 25,376 crore. This pricing represents about a 26% discount to its last unlisted market price of Rs 298 per share. Pine Labs had previously traded at a grey-market peak of Rs 385 per share in August 2025, implying a sharp decline of over 43% from the IPO’s upper band, highlighting the markdown faced by late-stage and retail participants ahead of listing.
While new investors enter at a discount, early backers are positioned to make substantial gains. Peak XV Partners, which holds nearly 20% of Pine Labs, purchased shares at an average price of Rs 5.60 per share. Its stake value jumps from around Rs 121 crore pre-band to approximately Rs 4,775 crore, a nearly 3,850% gain. CEO Amrish Rau and co-founder Lokvir Kapoor also benefit enormously, with their holdings surging over 3,000% and 45,000%, respectively. Institutional investors such as Actis, Temasek, PayPal Pte, and Mastercard Asia are set for multi-fold returns, while a few early investors like AIM Investment Fund see minor losses, and Lone Cascade LP gains modestly.
Despite these windfalls for insiders, concerns remain for new public investors. Analysts warn that the IPO discount may not protect them fully, as Pine Labs’ profitability remains uncertain. The company recorded profit just before the IPO, but similar to other firms, it may face challenges post-listing if sentiment or grey-market premiums weaken. Founded in 1998 as a POS device provider, Pine Labs now offers a full suite of merchant commerce solutions, including BNPL, invoicing, loyalty programs, and digital payments via Fave, serving over one million merchants in India, Malaysia, and the UAE. Ahead of the IPO, it redomiciled from Singapore to India and trimmed its issue size, reducing both the fresh issue and the offer-for-sale.
