Now Reading: LEAP India IPO sees 1% subscription on opening day
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LEAP India IPO sees 1% subscription on opening day
LEAP India’s initial public offering opened on 7 August with 1% subscription reported so far. The issue has a price band of Rs 151 to Rs 159 a share and comprises a…
The Story in Brief
LEAP India’s initial public offering opened on 7 August with 1% subscription reported so far. The issue has a price band of Rs 151 to Rs 159 a share and comprises a fresh issue worth Rs 480 crore and an offer for sale of Rs 2,000 crore. The company raised Rs 743.62 crore from anchor investors by allocating 4.68 crore shares at Rs 159 each.
The grey market premium stood at Rs 19.50, implying a possible 12.26% listing gain at the upper price band, though such signals are unofficial. SBI Securities and Swastika Investmart have raised valuation and cash-flow concerns, while Anand Rathi, BP Equities and Ventura Securities recommended subscribing for the long term. Listing is scheduled for 14 August on BSE and NSE.
The Indian Opinion
The easy narrative is that a grey-market premium proves a good IPO, while the opposite view treats every high valuation as an automatic rejection. Both are too simple. LEAP India has a strong niche position and reported rapid profit growth, but its 131 receivable days and modest return ratios deserve attention. Investors should judge whether operating cash flows improve after listing, not whether the unofficial premium stays near Rs 20.
Sources (2): livemint.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
