Shares of fintech company Pine Labs came under severe selling pressure in Wednesday’s session on May 13, with the stock plunging 20% to the day’s low of ₹151 apiece on the NSE, as the supply of shares in the secondary market surged following the expiry of the six-month shareholder lock-in period.
The six-month lock-in period for pre-IPO investors who had invested in the company before its public listing in December 2025 ended today, making up to 92.4 crore equity shares, or nearly 80% of the company’s outstanding equity, eligible for trading after the expiry of the lock-in period, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying.
A lock-in period in an IPO refers to a predetermined timeframe during which certain shareholders, often including promoters, the company, and pre-IPO investors, are restricted from selling their shares in the open market.
As the lock-in period expires, restricted shareholders become eligible to trade their shares in the secondary market, potentially increasing liquidity. However, there is also a risk that some investors may immediately offload their holdings, putting additional pressure on the stock price.
Going forward, the company’s shares are likely to remain in focus as it is scheduled to announce its March quarter earnings on Monday, May 25.
Last week, the company announced the acquisition of Shopflo for ₹88 crore. According to the company, the acquisition combines payments infrastructure with checkout solutions, enabling online merchants to improve conversion rates in addition to payment collection.
As per the last reported figures, Pine Labs’ revenue from its payments business grew 50% in the December quarter, driven by strong activity across sectors such as hospitality, diagnostics, and fitness.
Shopflo currently serves a customer base of around 1,000 e-commerce merchants, according to the company’s statement.
Pine Labs shares down over 31% from issue price
The company’s shares have struggled to gain momentum since listing, ending in the red in each subsequent month and losing a cumulative 34.3%. From its IPO price of ₹221, the stock is down 31.6% based on today’s intraday low.
The IPO, which opened in November, witnessed lacklustre investor interest, with the issue being subscribed 2.48 times overall.
Pine Labs is a technology-driven company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises, and financial institutions. It primarily operates through its Digital Infrastructure & Transaction Platform and its Issuing and Acquiring Platform.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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