Shares of KKR-backed LEAP India made a positive debut on the stock market on August 14. The company's stock was listed at a premium of more than 4% compared to the IPO issue price of ₹159.
Business News: Shares of KKR-backed supply chain solutions company LEAP India made a relatively weak debut in the domestic stock market on Friday, August 14. The company's shares were listed on both BSE and NSE at a premium of about 4 per cent to the upper IPO price band of ₹159. However, the actual listing remained weak compared to the gray market premium (GMP) prevailing before the market listing.
Shares of LEAP India opened at ₹165.90 on NSE, 4.34 per cent higher than the issue price of ₹159. The share was listed on BSE at ₹ 166, which means investors got an initial premium of 4.40 percent over the issue price. The market capitalization of the company was valued at around ₹7,312.91 crore with the listing.
Listing was weak compared to GMP
Before the IPO listing, the gray market premium of LEAP India shares was said to be around ₹13. Based on this estimate, the listing of the share was expected to be around ₹172. But the stock was listed below this on NSE and BSE. In this way, investors who invested money in IPO got limited premium at the time of listing. However, prices may fluctuate after stock market listing and the initial premium cannot be considered indicative of the company's long-term performance.
LEAP India IPO subscribed 8.38 times
LEAP India's ₹2,480 crore IPO was successful in generating a lot of attraction among investors. The issue was open for subscription from August 7 to August 11 and was subscribed a total of 8.38 times. According to data available on the exchange, bids were received for about 96.33 crore shares as against about 11.50 crore shares in the IPO. Strong demand was seen from institutional investors, while the share of retail investors was subscribed about 1.71 times. The company had fixed the price band of ₹151 to ₹159 per share for the IPO. The final issue price stood at ₹159 per share.
Raised ₹2,480 crore from IPO
LEAP India has raised a total of ₹2,480 crore through the public issue. This included a fresh issue of ₹480 crore and an offer for sale (OFS) of ₹2,000 crore. Of the proceeds from the fresh issue, the company will use about ₹360 crore to repay the debt. The remaining amount will be used for general corporate needs and business purposes. At the same time, the amount received from OFS will go to the respective existing shareholders.
LEAP India also received strong support from anchor investors ahead of the IPO. The company allotted about 4.67 crore shares to 32 anchor investors at a price of ₹159 per share and raised about ₹743.62 crore. Anchor investors included many big global institutional names. These included investors such as the Monetary Authority of Singapore, Morgan Stanley, Norway's Government Pension Fund Global, Amundi, Citigroup, Societe Generale and Goldman Sachs.
What does LEAP India do?
LEAP India is a technology-based supply chain and asset-pooling company established in the year 2013. It provides supply chain solutions to companies by providing pallets, containers and other material-handling equipment. The company's customer base includes industries such as FMCG, food and beverage, third-party logistics, e-commerce, quick commerce, automobile and industrial sectors. Private equity firm KKR also has a stake in the company.
LEAP India's operating revenue increased by about 27.8 per cent to ₹466.4 crore in FY 2024-25, compared to ₹364.9 crore in the previous financial year. However, the company's net profit remained almost stable during the same period. The company reported a profit of around ₹37.5 crore in FY25, compared to ₹37.1 crore in the previous year.