Pine Labs Gets Final NCLT Nod For Reverse Flipping To India

SUMMARY

As a result, shares in Pine Labs will be issued to existing shareholders of the Singapore entity

A company spokesperson said that the alignment is aimed at enhancing operational efficiency and supports its long-term vision of delivering value to customers, partners, and stakeholders

This comes months after Pine Labs received the initial approval from the NCLT to shift its domicile from Singapore to India in August

Making another stride towards its reverse flipping journey, fintech major Pine Labs has now secured the final approval from the National Company Law Tribunal (NCLT) to merge its Indian and Singapore entities.

As a result, shares in Pine Labs will be issued to existing shareholders of the Singapore entity.

A company spokesperson said that the alignment is aimed at enhancing operational efficiency and supports its long-term vision of delivering value to customers, partners, and stakeholders.

The development was first reported by The Head and Tale.

This comes months after Pine Labs received the initial approval from the NCLT to shift its domicile from Singapore to India in August.

Pine Labs’ domicile shift plans align with its potential plans for an initial public offering (IPO) worth $1 Bn. Moreover, it has already picked five bankers, including Axis Capital, Morgan Stanley, Citigroup, JP Morgan and Jefferies, for its IPO.

Despite its IPO around the corner, the company seems to be far from its path to profitability. In FY24, its net loss widened to INR 187 Cr from INR 56 Cr in the previous fiscal year. However, its operating revenue stood at INR 1,317 Cr in FY24 as against INR 1,281 Cr in the previous fiscal.

This is Pine Labs’ second bid at going public. Previously, it planned to list on the US exchanges but deferred the IPO plans due to unfavourable market conditions.

Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs offers comprehensive payment solutions, including point-of-sale terminals and online payment gateways, serving over 5 Lakh merchants across India, the Middle East, and Southeast Asia.

The company counts the likes of Peak XV Partners, Temasek, PayPal and Mastercard among its backers.

It competes against the likes of Paytm, PhonePe, RazorPay among others. If successful, Pine Labs’ IPO would be the largest by an Indian fintech company after Paytm’s $2.5 Bn listing in 2021.