Leap India shares drop 8% after listing at 4.3% premium to IPO price
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Leap India, a Mumbai-headquartered provider of supply chain management and asset-pooling solutions, shares made a positive debut on the bourses, listing at ₹165.90 on the NSE, a 4.3% premium over the IPO price of ₹159. However, the initial gains quickly faded as selling pressure dragged the stock lower, in line with the broader market.
Leap India shares fell by as much as 4.2% to ₹152.30 on the NSE, slipping below the issue price and declining nearly 8.2% from the listing price. In the first hour of trade, the stock hit a high of ₹167 and a low of ₹152.30.
At the time of reporting, the stock was down 4.1% at ₹152.48, with a market capitalisation of ₹6,705 crore. The equity benchmarks—Sensex and Nifty—were down by 0.4% each, tracking weak cues from global peers.
Listing below expectations
The listing also fell short of market expectations. Leap India’s last grey market premium (GMP) stood at ₹13, implying an estimated listing price of ₹172 against the upper issue price of ₹159. The actual debut at ₹165.90 represented a premium of just ₹6.90 per share.
“The current valuation appears demanding, with modest return ratios limiting the risk-reward profile. We maintain a Neutral view and suggest a stop-loss at ₹155,” said Shivani Nyati, Head of Wealth at Swastika Investmart.
She, however, added that the company holds a strong leadership position in the niche pallet-pooling industry, supported by high entry barriers and significant long-term growth potential given the underpenetration of the Indian market.
IPO subscribed 8.38 times
The muted debut came despite strong investor demand for the ₹2,480-crore IPO. The issue was subscribed 8.38 times on the final day of bidding, with the QIB portion receiving bids for 16.84 times the shares on offer. The NII and retail portions were subscribed 12.64 times and 1.71 times, respectively.
The company had raised ₹743.62 crore from anchor investors ahead of the IPO, with 4.67 crore shares allotted to 32 investors at ₹159 apiece. The anchor book included global investors such as the Monetary Authority of Singapore, Morgan Stanley, Norway’s Government Pension Fund Global, Goldman Sachs and Amundi, alongside domestic mutual funds and insurers.
Leap India’s IPO comprised a fresh issue of ₹480 crore and an offer for sale of ₹2,000 crore. The company plans to use ₹360 crore from the fresh issue to repay or prepay borrowings, with the balance earmarked for general corporate purposes.
Founded in 2013, Leap India operates in the supply-chain asset-pooling space, offering pallets, crates and other returnable transport assets to businesses. According to Frost & Sullivan, it is India’s largest on-demand asset-pooling provider by number of pooled assets.
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