Pine Labs Limited has made a significant investment of ₹1,28,99,95,290 in its wholly owned subsidiary Synergistic Financial Networks Private Limited (SFNPL) through subscription to a rights issue. The transaction, completed on January 30, 2026, involved the acquisition of 2,57,330 equity shares while maintaining the company's complete ownership of the subsidiary.

Investment Details

The investment structure and key parameters are outlined below:

About Synergistic Financial Networks Private Limited

SFNPL, incorporated on March 12, 2008, under the Companies Act, 1956, operates in the financial technology industry. The company specializes in facilitating financial transactions through systems infrastructure, including payment processing, providing end-to-end technology integrated solutions, and selling transaction-related infrastructure.

Following the investment, SFNPL's paid-up capital stands at ₹3,13,17,100. The subsidiary reported a turnover of ₹1,98,39,19,986 as of March 31, 2025.

Financial Performance Overview

SFNPL's revenue performance over the last three years demonstrates steady growth:

Strategic Objectives

The investment serves multiple strategic purposes for Pine Labs:

• Meeting working capital requirements of SFNPL
• Pursuing further growth opportunities within the subsidiary
• Enabling additional investments in step-down subsidiaries
• Strengthening the financial technology business segment

Regulatory Compliance

Pine Labs disclosed this investment pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction does not constitute a related party transaction, and no governmental or regulatory approvals were required for completion.

The investment reinforces Pine Labs' commitment to expanding its financial technology capabilities through its subsidiary network while maintaining strategic control over key business operations.

Pine Labs Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds from its Initial Public Offering. The fintech company filed the mandatory report with both BSE and NSE on January 28, 2026, in compliance with SEBI regulations.

IPO Proceeds Utilization Overview

The monitoring report, prepared by CARE Ratings Limited, reveals the company's progress in deploying its ₹2,080.00 crore IPO proceeds across various strategic objectives. During Q3FY26, Pine Labs utilized ₹610.76 crore, leaving ₹1,469.24 crore unutilized at the quarter end.

Key Areas of Fund Deployment

The company has made significant progress in two primary areas of its stated objectives. The largest utilization was towards debt repayment, where Pine Labs deployed ₹532.00 crore for the repayment and prepayment of certain borrowings, completing this objective as outlined in the offer document.

Additionally, ₹78.76 crore was utilized for IPO expenses, leaving ₹22.91 crore remaining for this category. The monitoring agency confirmed that all utilizations were in accordance with the disclosures made in the offer document, with no deviations observed.

Unutilized Funds Deployment Strategy

Pine Labs has adopted a conservative approach for its unutilized IPO proceeds, investing the funds in fixed deposits with reputable banks. The deployment strategy ensures capital preservation while generating steady returns.

Pending Strategic Investments

Several key investment areas remain unutilized, indicating the company's measured approach to capital deployment. The largest pending allocation is ₹760.00 crore designated for investment in IT assets, cloud infrastructure, procurement of digital check-out points, and technology development initiatives.

Further, ₹626.33 crore allocated for general corporate purposes and unidentified inorganic acquisitions remains unutilized, suggesting the company is evaluating opportunities carefully. An additional ₹60.00 crore earmarked for investments in subsidiaries Qwiksilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE for international expansion also remains undeployed.

Regulatory Compliance and Monitoring

The monitoring agency report confirms no material deviations from the stated objectives, with all regulatory approvals and compliance requirements being met. CARE Ratings Limited, serving as the monitoring agency under the agreement dated October 30, 2025, has provided an objective assessment based on chartered accountant certificates, management certifications, and bank statements.

The report indicates this is the first monitoring agency report for Pine Labs following its IPO, which took place from November 07, 2025, to November 11, 2025. The company's Board of Directors and Audit Committee reviewed and considered the report in their respective meetings held on January 28, 2026.