Now Reading: KKR-backed LEAP India Rs 2,480 crore IPO opens today
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KKR-backed LEAP India Rs 2,480 crore IPO opens today
LEAP India's Rs 2,480 crore initial public offering opens on August 7 and closes August 11. The price band is Rs 151-159 per share, and the minimum investment for retail investors is…
The Story in Brief
LEAP India's Rs 2,480 crore initial public offering opens on August 7 and closes August 11. The price band is Rs 151-159 per share, and the minimum investment for retail investors is Rs 14,946 for 94 shares. The issue includes a fresh issue of Rs 480 crore and an offer for sale of Rs 2,000 crore, with KKR-backed Vertical Holdings II selling the bulk of the OFS shares.
The company raised Rs 743.6 crore from 32 anchor investors, including Singapore's sovereign wealth fund GIC, Morgan Stanley, Goldman Sachs, and several domestic mutual funds. Anand Rathi Research has assigned a 'Subscribe, Long Term' rating, noting the IPO is aggressively priced at 113.6 times FY26 earnings. The Hindu Business Line advises investors to wait, citing the high valuation, acquisition-led growth, low return on equity, and negative free cash flow.
The Indian Opinion
The LEAP India IPO is being sold as a play on supply chain formalisation, but the numbers tell a different story: a 6.48 per cent return on equity and a P/E of 112 times trailing earnings. The narrative of 'asset-light for customers, capital-intensive for LEAP' is convenient, but it ignores that the company's growth has largely come from acquisitions, not organic expansion. The real test will be whether the company can sustain high utilisation rates and generate positive free cash flow after repaying Rs 360 crore of debt.
Sources (3): economictimes.indiatimes.com, economictimes.indiatimes.com (2), thehindubusinessline.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
