LEAP India shares make a muted stock market debut; shares list at 4% premium

Shares of LEAP India made a positive stock market debut on Friday, August 14, with the supply chain solutions player listing at Rs 166 on the NSE, marking a premium of 4.40 per cent over its issue price of Rs 159. On the BSE, the stock opened at a premium of 4.34 per cent over the issue price, at Rs 165.90.

Based on the listing price, retail investors who were allotted one lot of 94 equity shares made a profit of Rs 658 on their investment of Rs 14,946. Meanwhile, HNI investors allotted 14 lots, comprising 1,316 equity shares worth Rs 2,09,244, earned a profit of Rs 9,212 on their investment.

The listing of LEAP India was slightly below the market expectations. Ahead of its market debut, the stock commanded a grey market premium (GMP) of Rs 12-13 per share, indicating a potential listing gain of 7-8 per cent over the issue price. However, the GMP had stood at around Rs 15-16 per share when the issue opened for subscription.

The IPO of LEAP India was open for subscription between August 07 and August 11. It had offered its shares in the price band of Rs 151-159 per share with a lot size of 94 shares. The company raised a total of Rs 2,480 crore from its IPO, which include a fresh share sale of Rs 480  crore and an offer-for-sale (OFS) of up to 12,57,86,162 equity shares worth Rs 2,000 crore.

The issue was subscribed a 8.38 times, attracting bids worth over Rs 15,300 crore via over 9.87 lakh applications. The portion for qualified institutional bidders (QIBs) was booked 16.84 times, while the quota for non-institutional investors (NIIs) was subscribed 12.64 times. The allocations for retail investors and employees were subscribed 1.71 times and 10.99 times, respectively.

Investors seeking short term listing gain may consider profit booking with an expected listing gain 8-10 per cent investor who have medium to long term horizon may consider holding the stock given its strong structural growth prospectus, said Mahesh M, Ojha, VP Research & Business Development ad Kantilal Chhaganlal Securities.

The grey market premium of LEAP India has remained stable following the decent bidding and despite muted market sentiments in the listed markets. Last heard, the company was commanding a grey market premium (GMP) of Rs 13 apiece, suggesting a listing pop of nearly 8 per cent for the investors.

Incorporated in 2013, Mumbai-based LEAP India specializes in sustainable supply chain and asset-pooling solutions. It offers services including equipment pooling, returnable packaging, inventory management, transportation, and repair & maintenance across industries like e-commerce, FMCG, automotive, and consumer durables.

Brokerage firms were largely positive on the issue, suggesting to subscribe to it for long-term. JM Financial Ltd, Avendus Capital, UBS Securities India and IIFL Capital Services were the book running lead managers for LEAP India IPO, while MUFG Intine India served as the registrar of the issue.