LEAP India IPO Sees Subdued Day Two Demand; GMP suggests Rs 175 Listing Potential
The Initial Public Offering (IPO) of LEAP India, a Mumbai-based technology firm, registered a subscription rate of approximately 30 percent by 10:30 am on the second day of bidding. The issue, which is being priced within the band of Rs 151 to Rs 159 per share, received bids for 3,61,42,060 equity shares against a total offering of 11,49,91,735 shares.Subscription Status and Investor Demand Breakdown
Demand for the Rs 2,480-crore IPO demonstrated varied interest across investor segments. The Qualified Institutional Buyers (QIB) portion led the bidding, registering a strong subscription rate of 61 percent. In contrast, both the Non-Institutional Investor (NII) segment and the retail category were subscribed at nearly 20 percent each by this morning update.The IPO, which opened on August 7, is set to conclude on August 11, signaling sustained interest from institutional investors despite moderate early demand.
Offering Details and Market Expectation
The total issuance of Rs 2,480 crore includes both a fresh issue component and an Offer for Sale (OFS). The company is raising Rs 480 crore through the fresh issue. A substantial portion of Rs 2,000 crore comes from existing shareholders participating in the OFS tranche.Market trackers indicate that the Grey Market Premium (GMP) for LEAP India stands at Rs 16 per share as of August 10. Based on this GMP and the upper end price band of Rs 159, the potential listing price is estimated at Rs 175, suggesting a possible premium of around 10 percent.
Institutional Interest in Pre-Market Deals
Before the main IPO launch, LEAP India successfully completed an anchor investment round amounting to Rs 743.62 crore. This allotment covered 4.67 crore equity shares and featured global institutional heavyweights such as Morgan Stanley and Goldman Sachs.Six domestic mutual funds participated in the anchor book, alongside Aditya Birla Sun Life Insurance. Separately, prior to the IPO, KKR-backed Vertical Holdings II sold a 5.67 percent stake through private agreements for Rs 371 crore.
Funds Raised Allocation and Corporate Purpose
The proceeds from the fresh issue will be strategically utilized by LEAP India. The company plans to dedicate Rs 360 crore towards debt repayment, while the remainder of the funds raised will be allocated to general corporate purposes. Proceeds generated through the OFS component will accrue directly to the selling shareholders.LEAP India provides technology-enabled supply chain management and asset-pooling solutions across various industries including FMCG, e-commerce, and industrial sectors.
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