2 weeks ago
LEAP India IPO listing Friday; grey market hints modest premium
LEAP India is a company that gives businesses things like wooden pallets and crates, which they use to store and move their products safely.
This company decided to sell its own shares to people for the first time, which is called an IPO.
This is like a bakery selling small pieces of the shop to people who want to help it grow and earn money back.
A lot of people wanted to buy the shares, so the sale was subscribed more than eight times.
The shares started trading on the stock market on Friday, 14 August.
Before the shares started trading, people guessed what the price might be, and some guesses suggested the shares could open at about ₹171.
Since shares were sold at ₹159 each, that would mean a small profit of about ₹12 for buyers.
LEAP India has been growing, earning more money every year, and it plans to use some of the money it raised to pay off loans.
Nobody knows the final price for sure, but many people are excited to watch what happens.
LEAP India shares debuted on the BSE and NSE on Friday, 14 August, in a special pre-open session, with trading expected to begin at 10:00 IST.
The ₹2,480 crore IPO was subscribed 8.38 times (described as nearly 9 times overall), with the retail portion subscribed 1.71 times.
Grey market premium stood at ₹12–₹12.5, suggesting the stock could list near ₹171, a premium of about 7.55–8% over the ₹159 issue price.
The issue combined a ₹480 crore fresh issue (3.02 crore shares) and a ₹2,000 crore offer for sale (12.58 crore shares), with KKR-backed Vertical Holdings II selling shares worth about ₹1,998.6 crore.
LEAP India reported FY26 revenue of ₹729.53 crore and net profit of ₹62.34 crore, and plans to use about ₹360 crore of IPO proceeds to repay borrowings.
- Who
- LEAP India, described as the largest on-demand asset pooling provider in India's supply chain management sector, and investors who subscribed to its IPO; the issue was managed by JM Financial, Avendus Capital, IIFL Capital Services and UBS Securities India, with MUFG Intime India as registrar.
- What
- LEAP India's shares listed on the BSE and NSE after its ₹2,480 crore IPO was subscribed 8.38 times, with grey market signals pointing to a modest listing premium of about 7.55–8%.
- Where
- On the BSE and NSE in India, in a special pre-open session with trading expected to begin at 10:00 IST.
- When
- Friday, 14 August (listing); IPO subscription ran from 7 to 11 August and allotment was finalised on 12 August.
- Why
- The company plans to use net proceeds mainly to repay or prepay about ₹360 crore of borrowings and for general corporate purposes to fund future growth.
Bullish: strong growth and market leadership
Cautious: rich valuation and large OFS
IPO valuation
Bullish: strong growth and market leadership
Mahesh M. Ojha of Kantilal Chhaganlal Securities highlights LEAP India's estimated 90% share of the pallet pooling market, strong revenue/EBITDA/PAT growth and high entry barriers, calling the long-term growth opportunity attractive despite the rich multiple.
Cautious: rich valuation and large OFS
Tushar Badjate of Badjate Stocks and Shares calls the valuation of roughly 110x FY26 earnings the main concern, and notes about ₹2,000 crore of the ₹2,480 crore issue was an offer for sale, with proceeds going largely to existing shareholders.
Strategy at listing
Bullish: strong growth and market leadership
Investors with a medium- to long-term horizon may hold the stock given its strong structural growth prospects, recurring revenue model and market leadership.
Cautious: rich valuation and large OFS
Short-term investors seeking listing gains may consider profit booking, with an expected listing gain of 8–10%.
Key facts
- IPO size
- ₹2,480 crore
- Price band
- ₹151 to ₹159 per share
- Subscription
- 8.38 times (nearly 9 times overall)
- Retail subscription
- 1.71 times
- Grey market premium
- ₹12–₹12.5 (implies listing near ₹171)
- Fresh issue
- ₹480 crore (3.02 crore shares)
- Offer for sale
- ₹2,000 crore (12.58 crore shares)
- FY26 financials
- Revenue ₹729.53 crore; net profit ₹62.34 crore
Quotes
Mahesh M. Ojha
VP Research & Business Development, Kantilal Chhaganlal Securities Pvt. Ltd
“"FY26 revenue was around ₹730–750 crore and PAT around ₹62–63 crore, with good growth. The main concern is valuation—at the IPO price of ₹159, the company was valued at roughly 110x FY26 earnings. Also, around ₹2,000 crore of the ₹2,480 crore issue was OFS, so a large part of the issue proceeds was going to existing shareholders."”
livemint.com
“"Leap India Limited is the clear market leader in India's asset pooling industry, commanding an estimated 90% share of the pallet pooling market, supported by its extensive pooled asset base, Pan-India network, technology-enabled platform and strong customer relationships."”
livemint.com
Sources
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