LEAP India, a company specializing in sustainable supply chain and asset-pooling solutions, commenced trading on the Indian stock exchanges with a modest premium on Friday, August 14. The shares listed at Rs 166 on the National Stock Exchange (NSE), reflecting a 4.40 percent increase over its initial public offering (IPO) issue price of Rs 159. On the Bombay Stock Exchange (BSE), the stock opened at Rs 165.90, a 4.34 percent premium.
The debut, while positive, fell short of market expectations. Prior to its listing, the company's shares commanded a grey market premium (GMP) of Rs 12-13, suggesting a potential listing gain of 7-8 percent. This was even lower than the Rs 15-16 GMP observed when the IPO initially opened for subscription.
LEAP India's IPO, which was open from August 7 to August 11, offered shares in a price band of Rs 151-159 apiece, with a lot size of 94 shares. The company successfully raised Rs 2,480 crore, comprising a fresh share sale of Rs 480 crore and an offer-for-sale (OFS) of equity shares worth Rs 2,000 crore.
Retail investors who were allotted one lot of 94 equity shares saw a profit of Rs 658 on their Rs 14,946 investment based on the listing price. High Net Worth Individual (HNI) investors, with 14 lots (1,316 shares worth Rs 2,09,244), earned a profit of Rs 9,212.
The IPO witnessed strong subscription across categories, being overall subscribed 8.38 times. Qualified institutional bidders (QIBs) oversubscribed their portion by 16.84 times, while non-institutional investors (NIIs) subscribed 12.64 times. Retail investors' quota was subscribed 1.71 times, and the employee portion saw a robust 10.99 times subscription.
Incorporated in 2013, Mumbai-based LEAP India provides a range of services including equipment pooling, returnable packaging, inventory management, transportation, and repair & maintenance. Its clientele spans industries such as e-commerce, FMCG, automotive, and consumer durables.
Analysts from brokerage firms generally held a positive outlook on the issue, recommending a 'subscribe' for long-term investment. Mahesh M. Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, suggested that investors seeking short-term listing gains might consider profit booking, while those with a medium to long-term horizon could hold the stock given its strong structural growth prospects.