LEAP India IPO listing in focus: Can it offer double-digit gains? Check GMP

LEAP India IPO GMP today is ₹13.5 apiece. This means shares of the company are trading at ₹172.5 in the unlisted market, suggesting a listing pop of nearly 8.5 per cent.

LEAP India IPO listing: Following a robust demand for its initial public offering (IPO), investor focus is now shifting to LEAP India's stock market debut, with grey market premium (GMP) signalling a decent trend.

 

LEAP India IPO shares are set to list on Dalal Street on Friday, August 14. The offer had opened for bidding on August 7 and closed on August 11. During this period, the IPO garnered bids for 771.50 million shares as against 114.9 million shares on offer, resulting in an overall 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 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.

 

 

LEAP India IPO listing: GMP & strategy

Ahead of its listing, LEAP India IPO GMP is ₹13.5 apiece. This means shares of the company are trading at ₹172.5 in the unlisted market, suggesting a listing pop of nearly 8.5 per cent.

 

Mahesh Ojha, VP-research & business development, Kantilal Chhaganlal Securities, said that at the upper price band of ₹159, the issue is valued at 113.6X an EV/EBITDA multiple of 22.2X FY26 earnings. However, he expects that leverage reduction post-issue should improve the balance sheet and potentially bring down the valuation over time.  Also Read | Technocraft IPO: GMP at 17%; analysts share listing-day strategy

 

"Given the large addressable opportunity, recurring revenue model, high entry barriers and strong market leadership, we believe long-term growth opportunity remains attractive. Investors seeking short-term listing gain may consider profit booking with an expected listing gain of 8-10 per cent. Investors who have a medium-to-long-term horizon may consider holding the stock given its strong structural growth prospects," he added.

 

LEAP India Limited is a market leader in India's asset pooling industry, commanding 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, highlighting strong business momentum.

 

LEAP India IPO details

The ₹2,480-crore LEAP India IPO was a mix of a fresh issue worth ₹480 crore and an offer for sale of ₹2,000 crore. The price band for the offer was set at ₹151 to ₹159 per share. Investors could apply for the offer in lots of 94 shares and its multiples thereof.

 

The company plans to use the fresh proceeds for repayment of outstanding borrowings and general corporate purposes.

 

JM Financial, Avendus Capital, IIFL Capital and UBS Securities are the book-running lead managers, while MUFG Intime India is the registrar to the issue.

 

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