Synopsis

LEAP India shares dropped from their listing price, slipping below the IPO issue price after a modest debut. While analysts highlight the company's leadership in pallet pooling and long-term growth potential, demanding valuations and modest return ratios have led to a Neutral view, with a stop-loss suggested at Rs 155.

LEAP India Share Price

Shares of LEAP India Ltd made a positive debut on Friday, listing at Rs 165.90 on the BSE, a premium of over 4% to its issue price of Rs 159. However, the gains were short-lived as profit-booking dragged the stock 12.14% from its opening price to Rs 145.85. The stock was trading 8.27% below its issue price.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said that LEAP India made a modestly positive debut, supported by its strong leadership position in the niche pallet-pooling industry. She noted that the company benefits from high entry barriers and significant long-term growth potential given the underpenetration of the Indian market.

"However, the current valuation appears demanding, with modest return ratios limiting the risk-reward profile. We maintain a Neutral view and suggest a stop-loss at Rs 155," she added.

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The public issue comprised a fresh issue of Rs 480 crore and an offer for sale (OFS) of Rs 2,000 crore, taking the total issue 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.

Ahead of the public issue, LEAP India raised Rs 371.3 crore through a pre-IPO placement from institutional investors, including GIC subsidiary Gamnat Pte Ltd, Dymon Asia Multi-Strategy Investment (Singapore), and promoter Sunu Mathew.

The company issued 2.33 crore shares at Rs 159 apiece. Gamnat Pte Ltd invested Rs 280 crore, while Dymon Asia contributed Rs 50 crore. Matyas Possessiones Private Limited, in which promoter Sunu Mathew holds a 99% stake, invested Rs 23 crore.

Of the fresh issue proceeds, LEAP India plans to use approximately Rs 360 crore to fully or partially repay or prepay existing debt. The remaining amount will be used for general corporate purposes.

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LEAP India reported strong financial growth in FY2026, driven by increasing demand for sustainable supply chain and logistics solutions. For the financial year ended March 31, 2026, the company's total income rose to RS 747.36 crore from RS 485.03 crore in FY2025, registering a 54% year-on-year increase.

The company also witnessed a significant improvement in profitability, with Profit After Tax climbing to RS 62.34 crore in FY2026, compared with RS 37.56 crore in the previous financial year, representing a 66% year-on-year growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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