The much-awaited LEAP India IPO backed by global investment firm KKR has opened for subscription today, August 7.
The company aims to raise around Rs 2,480 crore through the IPO.
The issue includes two parts:
Fresh issue: Rs 480 crore through 3.02 crore shares
Offer for Sale (OFS): Rs 2,000 crore through 12.58 crore shares
Since a major portion of the IPO is an OFS, most of the money raised through this part will go to existing shareholders selling their stakes.
The IPO price band has been fixed between Rs 151 and Rs 159 per equity share.
LEAP India IPO GMP: Shares Trading at Premium in Grey Market
Before the official listing, LEAP India shares are showing positive interest in the grey market.
The shares are reportedly trading at a premium of around 12.3%, with the grey market price at nearly Rs 178.5 per share.
Based on this premium, investors applying at the upper price band could potentially see a listing gain of around Rs 1,833 per lot.
However, investors should remember that Grey Market Premium (GMP) is not an official indicator of how a stock will perform after listing.
The actual listing price can be different from the grey market trend.
LEAP India IPO Important Dates and Lot Size
According to the tentative schedule:
IPO opening date: August 7
Share allotment date: August 12
Expected listing date on NSE and BSE: August 14
For retail investors, the minimum application size is one lot of 94 shares.
At the upper price band of Rs 159 per share, investors will need around Rs 14,946 to apply for one lot.
Who Is Managing the LEAP India IPO?
JM Financial is the lead book-running manager for the IPO.
MUFG Intime India has been appointed as the registrar for the issue.
What Does LEAP India Do?
Founded in 2013, LEAP India provides supply chain and asset management solutions to businesses.
The company offers services such as:
Equipment pooling
Returnable packaging solutions
Inventory management
Transportation support
Repair and maintenance services
Its customers include companies from sectors such as e-commerce, FMCG, automotive and consumer durables.
KKR acquired a majority stake in LEAP India in 2023 as part of its investment strategy in Asia’s infrastructure sector.
Should You Subscribe to LEAP India IPO?
Brokerage firm Anand Rathi Research has highlighted both growth opportunities and valuation concerns.
According to the brokerage, at the upper price band, LEAP India is valued at a:
P/E ratio of 113.6 times FY26 earnings
EV/EBITDA ratio of 21.8 times
Price-to-book value ratio of 6.9 times
The brokerage noted that the company could benefit from growing demand for asset-pooling solutions, organised supply chains and international expansion.
However, it also pointed out that the IPO valuation appears high compared with the company’s ROE of 6.19%.
Anand Rathi Research has given the IPO a “Subscribe – Long Term” rating, suggesting that investors with a long-term view may consider the issue.
Investors should carefully evaluate the company’s financial performance, valuation and risk factors before making an investment decision.
