3 weeks ago
LEAP India IPO Day 2: 42% Subscribed, GMP At ₹16
LEAP India is a company that helps other businesses share things like big containers and racks, so companies don't have to buy everything themselves.
The company is selling its shares to the public for the first time, which is called an IPO.
This will help it raise money to grow and pay off some of its loans.
The shares cost between ₹151 and ₹159 each.
On the first day of the sale, people bought about 26% of the shares offered.
By the second day, interest picked up and subscriptions rose to about 42%.
Big institutional investors were the most interested, buying 61% of the shares reserved for them.
Some experts say the shares are a good buy for the long term, while others say they look too expensive right now.
Outside the stock market, people are already guessing the shares might start trading about 10% above the top price.
If all goes well, the shares will start trading on the stock market on August 14.
The ₹2,480 crore LEAP India IPO was subscribed 42% overall on day two as of 14:30 IST on August 10, up from 26% on day one.
Qualified Institutional Buyers led with 61% subscription of their quota, while NIIs and retail investors each subscribed 34%; the employee quota was oversubscribed 2.32 times.
The grey market premium stood at ₹16, implying an estimated listing price of ₹175 — a 10.06% premium over the upper price band of ₹159.
Anand Rathi gave a 'Subscribe – Long Term' rating despite calling the issue aggressively priced, while SBI Securities retained a 'Neutral' rating citing rich valuations and a working-capital-intensive model.
The IPO, comprising a ₹480 crore fresh issue and an offer for sale of about ₹2,000 crore, closes on August 11 with NSE and BSE listing expected on August 14.
- Who
- LEAP India Ltd, the asset-pooling and reusable packaging company founded in 2013 by Mathew, selling shareholders KKR-backed Vertical Holdings II and KIA EBT Scheme 3, and investors bidding in the IPO.
- What
- A ₹2,480 crore IPO that was 42% subscribed by the afternoon of day two (26% on day one), with a ₹16 grey market premium suggesting a roughly 10% listing gain.
- Where
- India, with shares to list on the NSE and BSE.
- When
- Opened on August 7, 2026; closes on August 11; allotment expected on August 12; listing expected on August 14.
- Why
- To raise about ₹360 crore to repay or prepay borrowings and the rest for general corporate purposes, and to allow existing shareholders such as KKR-backed Vertical Holdings II to sell their stakes.
Anand Rathi – 'Subscribe – Long Term'
SBI Securities – 'Neutral'
IPO Valuation
Anand Rathi – 'Subscribe – Long Term'
Anand Rathi notes the issue appears aggressively priced at 113.6x FY26 P/E, 21.8x EV/EBITDA and a 6.19% ROE, but sees LEAP India as well-positioned to benefit from asset-pooling adoption, supply chain formalization and international expansion, recommending 'Subscribe – Long Term'.
SBI Securities – 'Neutral'
SBI Securities says the IPO commands rich valuations of 20.9x FY26 P/E and 112.4x EV/EBITDA at the upper band, and prefers to monitor the company's performance for a few quarters after listing before adopting a more positive view.
Business Model and Outlook
Anand Rathi – 'Subscribe – Long Term'
Anand Rathi focuses on LEAP India's growth potential from increasing adoption of asset pooling solutions and supply chain formalization as supporting a long-term investment.
SBI Securities – 'Neutral'
SBI Securities acknowledges LEAP India as India's largest asset-pooling player with acquisitions such as SKAN Marine, CHEP India and TARON strengthening its leadership, but flags its working-capital-intensive model and around 131 days of receivables as concerns.
Key facts
- IPO Size
- ₹2,480 crore (fresh issue ₹480 crore + OFS ~₹2,000 crore)
- Price Band
- ₹151–₹159 per share
- Day 2 Subscription
- 42% as of 14:30 IST; QIB 61%, NII 34%, Retail 34%, Employees 2.32x
- Grey Market Premium (GMP)
- ₹16; estimated listing price ₹175 (~10.06% premium)
- FY26 Financials
- Net profit ₹62.3 crore (up 66%); revenue ₹729.5 crore (up 56%)
- Broker Ratings
- Anand Rathi: 'Subscribe – Long Term'; SBI Securities: 'Neutral'
- Key Dates
- Closes Aug 11; allotment Aug 12; listing on NSE/BSE Aug 14
- Use of Proceeds
- ~₹360 crore to repay borrowings; balance for general corporate purposes
Quotes
Anand Rathi
Senior analyst at brokerage Anand Rathi
“"At the upper end of the price band, the company is valued at a P/E of 113.6x FY26 earnings, EV/EBITDA of 21.8x, and P/BV of 6.9x, implying a post‑issue market capitalization of ₹70,045 million. While LEAP India is well‑positioned to benefit from increasing adoption of asset pooling solutions, supply chain formalization, and its international expansion strategy, the issue appears aggressively priced considering its ROE of 6.19%. Hence, we recommend a "Subscribe – Long Term" rating to the IPO."”
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Sources
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