LEAP India lists at 4% premium, then sinks 12% as profit-booking erodes gains

Shares of LEAP India Ltd. made a tepid stock market debut on Friday, listing at a 4.4% premium over the IPO price but immediately reversing course as investors booked profits.

The stock opened at Rs 165.90 on the NSE and Rs 166 on the BSE, against an issue price of Rs 159. The listing gain was significantly below the 8% premium that the grey market had indicated ahead of the offer.

By late morning, the stock had fallen 12.14% from its opening level to Rs 145.85, trading 8.27% below the IPO price, according to a report in The Economic Times. The sharp reversal underscored weak follow-through demand after an IPO that saw strong institutional backing but only lukewarm retail interest.

Tepid subscription, strong institutional demand

The public issue, which was open between August 7 and August 11, was subscribed 8.38 times overall, as per exchange data. The qualified institutional buyers (QIB) segment was the main driver, with 16.84 times subscription. The non-institutional investor (NII) category was booked 12.64 times. Retail investors showed limited enthusiasm, with their portion subscribed only 1.71 times.

The IPO comprised a fresh issue of equity shares worth Rs 480 crore and an offer for sale (OFS) of Rs 2,000 crore by existing shareholders, for a total issue size of Rs 2,480 crore. Under the OFS, KKR-backed Vertical Holdings II offloaded shares worth nearly Rs 1,999 crore, while promoter group entity KIA EBT Scheme 3 sold the remaining shares.

Pre-IPO and anchor investors

Ahead of the IPO, LEAP India raised Rs 371.3 crore through a pre-IPO placement from institutional investors including Gamnat Pte Ltd, a subsidiary of Singapore sovereign wealth fund GIC; Dymon Asia Multi-Strategy Investment (Singapore); and promoter Sunu Mathew. Gamnat invested Rs 280 crore, while Dymon Asia contributed Rs 50 crore.

Separately, the company raised Rs 743.62 crore from anchor investors, including Smallcap World Fund and the Monetary Authority of Singapore, as reported by NDTV Profit and News18.

Use of proceeds and financial performance

Proceeds from the fresh issue will be used primarily to repay debt. Approximately Rs 360 crore will go toward fully or partially repaying or prepaying existing borrowings, with the remainder earmarked for general corporate purposes and working capital requirements.

LEAP India reported strong financial growth for the financial year ended March 31, 2026. Total income rose to Rs 747.36 crore from Rs 485.03 crore in FY2025, a 54% year-on-year increase. Profit after tax climbed to Rs 62.34 crore from Rs 37.56 crore in the prior year, representing a 66% jump.

Broker caution and outlook

Brokerages have taken a cautious stance on the stock despite acknowledging LEAP India’s leadership in the niche pallet-pooling industry. According to The Economic Times, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said the company made a modestly positive debut supported by its strong position in a market with high entry barriers. However, she noted that the current valuation appears demanding with modest return ratios.

"We maintain a Neutral view and suggest a stop-loss at Rs 155," Nyati added.

Both Swastika Investmart and SBI Securities assigned a 'Neutral' rating to the IPO during the subscription period, as reported by News18. SBI Securities flagged that the business is working-capital intensive, with receivable days of around 131, and prefers to monitor performance for a few quarters before turning positive.

Company background

Founded in 2013, LEAP India provides asset-pooling and reusable packaging solutions across sectors including FMCG, food and beverage, e-commerce, automotive, and consumer durables. As of March 31, 2026, it had a customer network of over 1,000 clients, including Hindustan Coca-Cola Beverages, Marico, Daikin, and Panasonic Life Solutions. KKR acquired a majority stake in the company in 2023.

JM Financial, Avendus Capital, IIFL Capital Services, and UBS Securities India acted as book-running lead managers for the issue. MUFG Intime India served as registrar. At the upper price band, the company commanded a post-issue market capitalisation of about Rs 7,005 crore.