Leap India IPO: Full Update of KKR Backed Rs 2,400 Crore Issue
These days, IPO is being talked about everywhere in the stock market, and the most important thing in this time is Leap India IPO. This company is a very big player in supply chain solutions and pallet rental services, and the most special thing is that it has the support of global investment giant KKR. Due to this, there is a buzz about this IPO among both retail and institutional investors.
What are the details of Leap India IPO?
Leap India has filed its draft papers with SEBI, through which it will raise approximately Rs 2,400 crore from the market. This issue will consist of Rs 400 crore of fresh shares and an offer-for-sale (OFS) of Rs 2,000 crore through the promoters.
Promoter Vertical Holdings II, which is controlled by KKR Asia Pacific Infrastructure Holdings II, will sell its shares worth around Rs 1,998.6 crore. KIA EBT Scheme 3 will also sell some of its shares (Rs 1.38 crore) through OFS. This makes it clear that the promoters want to sell some of their stake but will remain with the company for the long term.
Pre-IPO Fundraising Ki Baat
There is another interesting angle to this IPO – the company can raise up to Rs 80 crore through pre-IPO placement. If this happens, the size of the fresh issue will be reduced by that much. This shows that investors are already quite interested in the company and they want to strengthen their balance sheet.
At present, promoters Vertical Holdings II and Sunu Mathew have 95.28% stake, and the remaining 4.79% stake is held by public shareholders like Sixth Sense India, First Bridge India and Madhurima International. After the IPO, public shareholding will increase even more.
Where will the Leap India IPO money be invested?
The company will use Rs 300.1 crore of the fresh issue money from the IPO to repay its borrowings. This is a smart move as the consolidated borrowings of Leap India have now reached Rs 873.6 crore by May 2025. Reducing debt is a positive sign for investors. The remaining money will be used for general corporate purposes, which may include expansion, working capital and new projects.
A look at the financial performance
Now let’s talk about the numbers, which are most important for every investor. The company’s profit till March 2025 was Rs 37.6 crore, which is only 1% more than Rs 37.2 crore last year. Profit growth was slow, but the revenue picture is quite strong.
Revenue showed a jump of 27.8% and reached Rs 466.5 crore, which was Rs 365 crore last year. EBITDA also increased by 25.8% to Rs 255 crore. Yes, there was slight pressure on the margin and it fell by 94 bps to 54.66%. This shows a little cost pressure, but the overall growth trend is positive.
Leap India’s Market Position
Talking about industry position, Leap India is India’s largest on-demand asset pooling provider in terms of pooled assets. As of May 2025, the company had 1.36 crore assets and has created its strong network which includes 7,747 customer touchpoints and 30 fulfillment centers.
The biggest thing is that the company has 900+ customers which also include top blue-chip companies. Due to this wide customer base, demand remains stable and dependency on a single client is reduced.
Merchant Bankers and IPO Execution
The company has appointed top-tier merchant bankers to take the IPO to the market – JM Financial, Avendus Capital, IIFL Capital Services and UBS Securities India. The involvement of these big names will smoothen the IPO execution and also maintain transparency for investors.
Should I invest in Leap India IPO?
If seen holistically, Leap India IPO seems to be a strong opportunity. The global reputation of the promoters, revenue growth, wide customer network and focus on debt repayment all make it a solid IPO. Yes, margin pressure and slow profit growth are a risk factor, but from a long-term perspective the company’s positioning looks strong.
For those who believe in the growth story of India’s logistics and supply chain sector, this IPO can be a good option. But always remember that every investment is associated with risk, so it is important to consult your financial advisor.
Disclaimer:
This article is for informational purpose only. It should not be considered as investment advice. Before investing in any IPO or shares, definitely take advice from a certified financial advisor.
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