Digital payments provider Pine Labs has submitted its draft red herring prospectus to regulators to go public in India.  

The company is looking to raise approximately Rs 26bn ($303m) by issuing new shares in its initial public offering (IPO). 

The prospectus also reveals that Pine Labs may consider a pre-IPO placement worth up to Rs 5.2bn, set for listing on NSE and BSE.   

Existing shareholders, including PayPal, Mastercard Asia/Pacific, and Peak XV Partners Pine Investment Holdings, are set to sell up to 147.8 million shares as part of the IPO. 

For the fiscal year 2024, Pine Labs posted a loss of Rs 1.9bn, on a restated basis, against a revenue of Rs 13.4bn.

The company, established in 1998, has stated that the IPO proceeds will be used for the repayment of debt and for investment in overseas units in Singapore, Malaysia, and the UAE. 

The IPO is being managed by a consortium of investment banks, including Axis Capital, Morgan Stanley India Company, Citigroup Global Markets India, J.P. Morgan India Private, and Jefferies India. 

Pine Labs operates in the digital payments sector, offering end-to-end payment solutions and hardware to merchants, and competes with other entities such as Paytm and PhonePe. 

In March, the company integrated Visa Instalment Solutions (VIS) into its multi-issuer payment platform.

This development is designed to provide merchants in Southeast Asia with the capability to offer instalment payment options for domestic and international transactions.