LIVE
NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%

LEAP India IPO: Shares Drop 5.3% on Debut, Valued at $725M

By ThePip DeskLEAP India IPO: Shares Drop 5.3% on Debut, Valued at $725M

KKR-backed LEAP India’s IPO sees shares fall 5.3% on debut, valuing the logistics firm at $725.2M despite strong demand. Analysts cite valuation concerns.

KKR-backed LEAP India shares plunged 5.3% on their trading debut Friday, valuing the supply chain logistics firm at $725.2 million (69.18 billion rupees).

This drop occurred despite the shares listing at a 4.3% premium to their issue price. They opened at 165.9 rupees apiece on the National Stock Exchange of India, compared to an issue price of 159 rupees.

IPO Metrics

  • The $260 million initial public offering was oversubscribed 8.38 times overall, indicating strong demand.
  • It comprised a fresh issue of shares worth $50.3 million and an offer-for-sale of $209.7 million, primarily from KKR-backed Vertical Holdings II.
  • Retail investors subscribed 1.71 times the shares reserved for them, despite broader market sentiment.

The trading debut took place in a subdued market environment, with the benchmark Nifty 50 index experiencing a 0.2% decline on the same day.

Valuation Scrutiny

Analysts voiced concerns over LEAP India’s valuation, specifically highlighting its declining EBITDA margins even with rapid scale-up efforts.

Arihant Capital further emphasized the firm’s sensitivity to utilization and asset recovery. They also noted the absence of direct listed peers, which collectively temper near-term earnings visibility and overall valuation comfort for investors.

Home/business/Article