Leap India Ltd is set to launch its ₹2,480 crore initial public offering in August, facing mixed analyst ratings and a modest grey market premium as it seeks to expand in the logistics sector amidst a busy IPO pipeline.
Leap India Ltd is set to open its initial public offering on August 7 and close it on August 11, with the logistics-focused company seeking to raise ₹2,480 crore through a mix of new shares and an offer for sale. The price band has been fixed at ₹151 to ₹159 a share, and the stock is expected to list on the BSE and NSE on or around August 14, according to Business Standard.
The offer consists of a fresh issue of 3.01 crore equity shares and an offer for sale of up to 12.5 crore shares by existing shareholders. That means the company itself will receive proceeds only from the fresh issue, while the secondary sale will go to the selling shareholders. Leap India’s market debut comes at a time when several companies are preparing to tap the primary market, with market participants pointing to a more active IPO pipeline in August.
Analysts cited by Business Standard have taken a cautious view on the deal, with both SBI Securities and Swastika assigning a “Neutral” rating. SBI Securities said Leap India is a large on-demand asset-pooling provider with a diversified customer base and a business model built around reusable rental arrangements for pallets, containers and material-handling equipment. But it also flagged the company’s working-capital intensity and receivable days of 131, saying cash conversion remains a concern. Swastika said the company has a strong position in a niche market with high entry barriers, but argued the valuation looks demanding and the risk-reward balance is not attractive at current pricing.
The grey market is indicating only a modest premium. Business Standard reported that Leap India shares were trading at ₹165.5 in unofficial market dealings at 2 pm, about 4.09% above the top end of the price band. Investors can apply for a minimum lot of 94 shares and in multiples thereafter. The issue allocation sets aside 50% for qualified institutional buyers, 15% for non-institutional investors and 35% for retail buyers. JM Financial is the book-running lead manager and MUFG Intime India is the registrar.
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