LEAP India IPO listing: Shares of LEAP India, a market leader in India's asset pooling industry, were off to a positive start on Dalal Street on Friday, August 14, as they listed at over 4 per cent premium over the initial public offer (IPO) price of ₹159.
LEAP India share price opened at ₹166 on the BSE, up 4.40 per cent over the issue price. Meanwhile, on the National Stock Exchange (NSE), it listed at a 4.34 per cent gain at ₹165.90. The listing missed expectations as signalled by the grey market premium (GMP).
Ahead of its listing, LEAP India IPO GMP was ₹13, signalling a listing price of ₹172, up 8.18 per cent. Shivani Nyati, head of wealth at Swastika Investmart, said that LEAP India made a modestly positive debut. "The company holds a strong leadership position in the niche pallet-pooling industry, supported by high entry barriers and significant long-term growth potential given the underpenetration of the Indian market.
However, the current valuation appears demanding, with modest return ratios limiting the risk-reward profile," she said. Nyati maintained a 'Neutral' view and suggested a stop-loss at ₹155. LEAP India IPO detailsThe ₹2,480-crore LEAP India IPO had opened for bidding on August 7 and closed on August 11.
During the bidding period, the offer recorded bids for 771.50 million shares as against 114.9 million shares on offer, resulting in total subscription of 6.71 times. The qualified institutional buyer (QIB) segment was booked the most at 12.83 times, followed by the non-institutional investor (NII) segment at 11.39 times, while the retail quota just scraped through at 1.20 times bids.
The employee portion received 8.96 times subscription at the end of the three-day bidding process. The offer was a mix of fresh issue of shares worth ₹480 crore and an offer for sale of ₹2,000 crore. The price band for LEAP India IPO was set at ₹151 to ₹159 per share.
The company plans to use the fresh proceeds for repayment of outstanding borrowings and general corporate purposes. LEAP India operates in the asset pooling industry, with an estimated 90 per cent share of the pallet pooling market, supported by its extensive pooled asset base, pan-India network, technology-enabled platform and strong customer relationships.
Its revenue/Ebitda/PAT clocked CAGRs of 41.4 per cent/33.3 per cent/29.5 per cent during FY24–FY26. Analysts have been bullish on the offer given the large addressable opportunity, recurring revenue model, high entry barriers and strong market leadership.