Now Reading: LEAP India IPO opens at Rs 151-159, brokerages split on valuation
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LEAP India IPO opens at Rs 151-159, brokerages split on valuation
LEAP India IPO opens at Rs 151-159, brokerages split on valuation
LEAP India’s Rs 2,480 crore initial public offering opened on 7 August, with the issue subscribed 1% so far, Livemint reports. The price band is Rs 151-159 a share, with a lot…
The Story in Brief
LEAP India’s Rs 2,480 crore initial public offering opened on 7 August, with the issue subscribed 1% so far, Livemint reports. The price band is Rs 151-159 a share, with a lot size of 94 shares. The company raised Rs 743.62 crore from anchor investors by allotting 4.68 crore shares at Rs 159. Grey market indications of Rs 18-20 suggest a possible 12-13% listing gain, though such signals are unofficial. Shares are scheduled to list on the BSE and NSE on 14 August.
The issue includes a fresh issue of Rs 480 crore and an offer for sale of Rs 2,000 crore. Brokerages differ: Anand Rathi, BP Equities and Ventura recommended subscribing for the long term, while SBI Securities and Swastika Investmart advised caution over valuations, modest returns and 131 receivable days.
The Indian Opinion
The easy story is that a strong anchor book and grey market premium make this a straightforward listing-gain bet. The opposite lazy narrative is that a niche leader automatically deserves any price. Both skip the key risk: LEAP India’s working-capital needs and modest return ratios. Brokerages themselves disagree on whether its market position offsets demanding multiples. Investors should judge the business after listing by cash-flow conversion and receivable days, not by the unofficial premium. Will those 131 days fall over the next few quarters?
Sources (2): livemint.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
