Now Reading: KKR-backed LEAP India lists at 4% premium, then falls below issue price
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KKR-backed LEAP India lists at 4% premium, then falls below issue price
KKR-backed LEAP India lists at 4% premium, then falls below issue price
LEAP India, backed by KKR, listed at Rs 165.90 on the NSE on Friday, a 4.3% premium to its issue price of Rs 159, and at Rs 166 on the BSE. The…
The Story in Brief
LEAP India, backed by KKR, listed at Rs 165.90 on the NSE on Friday, a 4.3% premium to its issue price of Rs 159, and at Rs 166 on the BSE. The stock soon fell below the issue price, touching Rs 154.21 on the NSE and Rs 152.25 on the BSE, as weak market sentiment and valuation concerns weighed. Overall subscription for the Rs 2,480-crore IPO was 8.38 times, but retail investors subscribed only 1.71 times.
The supply chain logistics firm is valued at Rs 6,918 crore ($725 million). The debut contrasted with Technocraft Ventures, which listed at a 34% premium and traded 58% higher. LEAP India's revenue rose to Rs 730 crore in FY26 from Rs 365 crore in FY24, but analysts note declining EBITDA margins. The company plans to use fresh issue proceeds to repay borrowings and fund working capital.
The Indian Opinion
The listing is being called underwhelming, but the real story is the gap between institutional and retail appetite. QIBs subscribed 16.84 times while retail managed only 1.71 times. That mismatch, plus falling EBITDA margins flagged by Arihant Capital, suggests smart money stayed cautious. Grey market whispers of an 8% listing gain proved overblown. The real test is whether asset-heavy pooling can generate consistent returns in a slowing economy. What will LEAP’s utilisation rates look like at the next quarterly result?
Sources (4): thehindubusinessline.com, thehindubusinessline.com (2), ndtvprofit.com, livemint.com
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
