LEAP India Shares Slip Below IPO Price After Modest Debut, Analyst Flags Valuation

Shares of pallet-pooling provider LEAP India Ltd. made a subdued stock market debut on Friday, opening at a modest premium before sliding sharply into negative territory on heavy profit-booking.

The stock listed at Rs 165.90 on the BSE and Rs 166 on the NSE, a premium of roughly 4.4% over the IPO price of Rs 159. However, gains evaporated within the first session. Profit-booking dragged the stock 12.14% from its opening price to Rs 145.85 on the BSE, according to Economic Times. By late morning, the stock was trading 8.27% below its issue price.

The listing fell short of unlisted market expectations, which had signaled an 8% listing gain based on grey market premium, ET reported.

The Rs 2,480-crore initial public offering, which was open for subscription between August 7 and August 11, drew overall bids of 8.38 times the shares on offer, as per ET. The qualified institutional buyers segment saw strong demand at 16.84 times, while non-institutional investors subscribed 12.64 times and retail investors 1.71 times. NDTV Profit reported that total bids amounted to 96.32 crore shares against 11.49 crore shares on offer.

The IPO comprised a fresh issue of equity shares aggregating up to Rs 480 crore and an offer for sale of up to Rs 2,000 crore, taking total size to 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, ET reported.

Ahead of the public issue, the company raised about Rs 371.3 crore through a pre-IPO placement at Rs 159 per share. Investors included GIC subsidiary Gamnat Pte Ltd, which invested Rs 280 crore, hedge fund Dymon Asia Multi-Strategy Investment (Singapore), which put in Rs 50 crore, and promoter Sunu Mathew's Matyas Possessiones Private Limited, which invested Rs 23 crore, according to ET.

NDTV Profit reported that the company had also mobilised Rs 743.62 crore from a clutch of institutional investors on Thursday, including Smallcap World Fund and the Monetary Authority of Singapore, in what appeared to be anchor allocations.

The company plans to use approximately Rs 360 crore from the fresh issue proceeds to fully or partially repay existing debt, with the remainder for general corporate purposes and working capital needs, as per the prospectus cited by multiple sources.

**Financial Performance and Valuation**

LEAP India reported strong financial growth for the 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, according to the company's filings. Profit after tax climbed 66% to Rs 62.34 crore from Rs 37.56 crore.

Despite the growth, analyst Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said the debut was "modestly positive," supported by the company's strong leadership position in the niche pallet-pooling industry with high entry barriers. "However, the current valuation appears demanding, with modest return ratios limiting the risk-reward profile," Nyati told ET. She maintained a "Neutral" view and suggested a stop-loss at Rs 155.

At the upper end of the price band, the company commanded a post-issue market capitalisation of about Rs 7,005 crore, as reported by NDTV Profit.

**Company Background**

Founded in 2013, LEAP India operates in the sustainable supply chain and logistics infrastructure space, providing asset-pooling and reusable packaging solutions. Its customer base exceeded 1,000 clients as of March 31, 2026, including companies such as Hindustan Coca-Cola Beverages, Marico, Daikin, and Panasonic Life Solutions India, according to its prospectus cited by ET.

Global investment firm KKR acquired a majority stake in the company in 2023 as part of its Asia infrastructure strategy.

JM Financial, Avendus Capital, IIFL Capital Services, and UBS Securities India acted as book-running lead managers to the issue, while MUFG Intime India served as registrar.