Pine Labs Shares Worth ₹500 Crore Become Tradable Today

Shares of Pine Labs Ltd. are set to attract significant attention today, December 8, as the company’s one-month shareholder lock-in period concludes. Approximately 19.8 million shares, accounting for 2% of the company’s outstanding shares, will become available for trading. According to Nuvama Alternative & Quantitative Research, these shares are valued at nearly ₹489.1 crore based on the closing price from last Friday.

While the expiration of the lock-in period allows for trading, it does not guarantee that all eligible shares will be sold in the open market. This marks the first of two upcoming instances where shareholder lock-ins will end for Pine Labs this week. A second round will occur on December 12, releasing an additional 39.7 million shares or 3% of the company’s outstanding shares, with an estimated value of ₹984 crore at Friday’s closing price.

Pine Labs recently reported strong financial results in its first quarterly update since going public. The company’s Gross Transaction Value (GTV) surged by 92% year-on-year to reach $48.2 billion, while the total number of transactions increased by 44% to approximately 1.9 billion. The firm posted a net profit of ₹6 crore, a slight rise from ₹5 crore in the previous quarter.

Despite the positive growth, the adjusted Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) remained relatively stable at ₹122 crore, nearly unchanged from ₹121 crore a year ago. A notable factor contributing to the company’s profitability this quarter was a significant decrease in Employee Stock Ownership Plan (ESOP) expenses, which fell by 28% to represent 4% of revenue, down from 7% last year.

Shares of Pine Labs closed 2.1% higher last Friday at ₹247.75, reflecting a 15% premium over its initial public offering price of ₹221 per share. The market will be monitoring the trading activity closely as the lock-in period ends, with investors keen to see how this influx of shares will impact the stock’s performance.