Pine Labs shares worth nearly ₹500 crore to free up for trade today as shareholder lock-in ends

Shares of newly listed Pine Labs Ltd. will be in focus on Monday, December 8, as its one-month shareholder lock-in period comes to an end.

As many as 19.8 million shares or 2% of the company's outstanding will free up for trade as the lock-in comes to an end today, according to Nuvama Alternative & Quantitative Research.

Based on Friday's closing price, the value of the shares that free up for trade today is worth ₹489.1 crore.

It must be noted that the end of the shareholder lock-in period does not mean all the shares will be sold in the open market, but they only become eligible to be traded.

This is the first out of the two instances of shareholder lock-ins ending that Pine Labs will see this week.

The second instance of Pine Labs' shareholder lock-in ending will take place on Friday, December 12, where as many as 39.7 million shares or 3% of the company's outstanding will free up for trade, according to the Nuvama Alternative note.

Based on Friday's closing price, the total value of the shares that will free up for trade this Friday is ₹984 crore.

In its first quarterly result after listing, Pine Labs' GTV grew by 92% from last year to $48.2 billion, while the number of transactions grew by 44% from last year to 1.9 billion.

Its net profit stood at ₹6 crore from ₹5 crore in the previous quarter, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on an adjusted basis also remained flat at ₹122 crore from ₹121 crore last year.

There was also a sharp drop in ESOP expenses that contributed to the profitability of the company this quarter. ESOP expenses fell 28% from last year and stood at 4% of revenue, compared to 7% last year.

Shares of Pine Labs ended 2.1% higher last Friday at ₹247.75. The stock trades 15% above its IPO price of ₹221 per share.