A new listing today – Pine Labs and it was a strong one too. As against the IPO price of Rs.221, the stock for listed on the BSE at Rs.242 and rose to an intraday high at Rs.283.70 and is now trading at Rs.260 levels.

Response to the IPO  was very weak – HNIs at  0.3x, QIBs at 4x, Retail at 1.22x ad overall it was subscribed at 2.46x.

Pine Labs is an NCR-based payments company offering 18 lakh digital check-out points or point-of-sale terminals (enjoying ~20% market share) and pre-paid cards (22 cr cards issued, contributing to ~30% of revenue), the later through acquisition of Qwikcilver in 2019. Company serves 10 lakh merchants, 716 consumer brands and 177 financial institutions in India and Asia.

In our IPO Analysis, we had concluded - Pine Labs’ weak fundamentals offer nothing to potential investors and the IPO is a ‘clear avoid’.