 "Pine Labs secures NCLT approval to merge domestic, Singapore entities")
Fintech major Pine Labs has received an initial approval from the National Company Law Tribunal (NCLT) to merge its entities in India and Singapore.
After its first motion plea getting approved at the tribunal, a second motion will be filed for a final approval by the NCLT.
"In view of the above, the First Motion Application stands allowed by giving liberty to the Applicant Company to file Second Motion Petition..." the order reads.
The development comes as the Singapore-based digital payments company is shifting its domicile back to India. The cost of the reverse flipping could not be acsertained.
The merger is expected to lead to a reduction in overhead expenses such as administrative and statutory compliances.
“The proposed Amalgamation would result in consolidation and simplification of the overall group structure, to enable more efficient management, control and operational excellence of its various businesses,” per the tribunal order that Business Standard has reviewed.
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It would enable the fintech firm to efficiently allocate and utilise resources ‘by avoiding duplication between India and Singapore’.
The company had previously received approval from a Singapore Court to relocate its base to India.
The company may be eyeing an initial public offering (IPO) of $1 billion, Business Standard reported in June.
This would be the biggest by an Indian fintech firm after One97 Communications, the company that operates brand Paytm, listed itself on the bourses in 2021.
The Noida-based company had raised a total of $1.32 billion over 14 rounds and is valued at $5.8 billion, according to data from Tracxn.