KKR-backed Leap India’s shares fell 5.3% on its debut, highlighting valuation challenges amid robust investor interest and a cautious market environment.
LEAP India made a weak stock market entrance on Friday, with shares sliding 5.3% after listing at ₹165.9 on the National Stock Exchange of India, only 4.3% above the issue price of ₹159. The decline left the KKR-backed supply chain logistics company with a market value of ₹6,918 crore, or about $725.2 million, in a session that came against a soft broader market backdrop.
Investor demand for the offering had been solid before the debut, with the IPO drawing bids for 8.38 times the shares on sale. The deal combined a fresh issue worth $50.3 million with an offer for sale of $209.7 million, largely from KKR-backed Vertical Holdings II. The company also saw retail participation of 1.71 times the shares reserved for individual investors, though analysts said valuation concerns weighed on appetite.
Arihant Capital said last week that declining EBITDA margins, or earnings before interest, tax, depreciation and amortisation, despite rapid expansion, together with sensitivity to utilisation and asset recovery, were clouding near-term earnings visibility and making the valuation harder to justify. The absence of direct listed peers also made comparison difficult, adding to the caution around the stock.
The debut comes during an active period for India’s IPO market. A recent Business Standard report said dozens of companies have filed draft prospectuses with the Securities and Exchange Board of India, while many more have received approval but have yet to launch. That broader pipeline suggests the market remains open, even if investors are increasingly selective about pricing and profitability.
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