Fintech firm Pine Labs has reduced the size of its upcoming IPO as existing shareholders opted to sell a smaller portion of their stake at the set price band, and the company decided to lower its net proceeds to manage debt in light of its current financial position, CEO Amrish Rau said.
Earlier, the company was planning to raise Rs 2,600 crore through the fresh issue. This has been pared down to Rs 2,080 crore.
The number of shares in the offer for sale (OFS) was reduced from 147.8 million to 82.3 million shares.
The fintech firm has priced its IPO between Rs 210 and Rs 221 per share.
The IPO will open for subscription on November 7 and close on November 11. Bidding for anchor investors will be open on November 6.At the upper end of the price band, the company is valued at Rs 25,377 crore.
The Rs 3,900 crore IPO comprises a fresh issue of Rs 2,080 crore and an OFS of up to Rs 1,819 crore.
"As far as the primary is concerned, we decided to reduce some of the components related to debt reduction. Our financial position improved dramatically. We felt that we don't need to dilute and then pay off that debt, so we reduced the component which we are raising to pay off the debt," Rau told Business Standard.
The company proposes to utilise the net proceeds towards repayment of certain borrowings, investment in certain of its subsidiaries, investment in IT assets, expenditure on cloud infrastructure, procurement of digital checkout points, and technology development initiatives.
The company will now allocate Rs 532 crore towards debt repayment, down from Rs 870 crore earlier. Rau indicated that this reduction aligns with the company's intention to avoid dilution for debt servicing.
-- Ajinkya Kawale & Sundar Sethuraman, Business Standard
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