June 26 (Reuters) - Indian fintech firm Pine Labs

has filed for an initial public offering, draft papers

showed on Thursday, with the company set to issue fresh shares

worth 26 billion rupees ($304 million).

Pine Labs offers full stack payment solutions including

point-of-sale machines to merchants for card payments and

competes with Paytm and Walmart's ( WMT ) PhonePe.

Existing backers, which include Peak XV, Paypal ( PYPL ) and

Mastercard ( MA ), are selling up to 147.8 million shares in the

IPO.

Proceeds from the fresh shares issued will be used for

investing in overseas units to expand the firm's presence beyond

India, develop technology and pare down borrowings, draft papers

showed.

Morgan Stanley, Citi and Jefferies are among the book

running lead managers of the offering.

($1 = 85.6150 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia

Cheema and Mrigank Dhaniwala)