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LEAP India IPO subscribed 42% on day 2, retail lags
LEAP India's Rs 2,480 crore IPO was subscribed 42% by 2:30 pm on day two, up from 26% on day one. Qualified institutional buyers led, bidding for 61% of their quota, while…
The Story in Brief
LEAP India's Rs 2,480 crore IPO was subscribed 42% by 2:30 pm on day two, up from 26% on day one. Qualified institutional buyers led, bidding for 61% of their quota, while retail and non-institutional investors each subscribed only 34%. The employee portion was oversubscribed 2.32 times. The issue, which opened on August 7 and closes on August 11, has a price band of Rs 151-159 per share.
The Indian Opinion
The IPO's so-called 'mixed response' is a familiar pattern, QIBs lead, retail waits. Calls of aggressive pricing are worth listening to, especially when a brokerage itself flags a P/E of 113x and ROE of just 6%. Yet the GMP of Rs 16 signals some confidence. The real test will come post-listing: can the company sustain its 56% revenue growth while servicing its debt? Watch for the interest-cost savings from the Rs 360 crore repayment, if they do not hit the projected Rs 29-32 crore, it is a red flag.
Sources (2): inc42.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
