LEAP India IPO Subscribes 49% on Day 2, Closes Tuesday

Supply chain asset pooling firm LEAP India’s Initial Public Offering (IPO) reached a 49% subscription rate on its second day of bidding, Monday. The issue received bids for 5,62,11,154 shares against a total of 11,49,91,735 shares on offer, according to data from the NSE.

• Qualified institutional buyers (QIBs) subscribed 61% of their allocated quota.
• Non-institutional investors subscribed 50% of their portion.
• Retail investors saw a 41% subscription rate.

Prior to the IPO, LEAP India had already secured Rs 743.62 crore from institutional investors. The Rs 2,480-crore IPO is scheduled to close on Tuesday.

IPO Structure and Valuation

The IPO’s price band is fixed between Rs 151 and Rs 159 per share. This offering combines a fresh issue of equity shares and an offer for sale from existing shareholders.

• The fresh issue of equity shares is valued at up to Rs 480 crore.
• The offer for sale (OFS) comprises up to Rs 2,000 crore.
• The total issue size stands at Rs 2,480 crore.
• At the upper end of its price band, LEAP India anticipates a post-issue market capitalization of approximately Rs 7,005 crore.

Funds from the fresh issue will be directed towards debt repayment and working capital requirements. The company also completed a pre-IPO placement on August 3-4, raising about Rs 371.3 crore from investors including Gamnat Pte Ltd and Dymon Asia Multi-Strategy Investment (Singapore) Pte Ltd.

Listing and Advisors

LEAP India’s equity shares are slated for listing on both the BSE and the NSE. JM Financial, Avendus Capital, IIFL Capital Services, and UBS Securities India are serving as the book-running lead managers for the offering.

MUFG Intime India has been appointed as the registrar for the IPO process. Investors have until Tuesday to participate in the bidding for the issue.