New Delhi: Logistics solutions provider LEAP India opened its Rs 2,480 crore initial public offering for subscription on August 7, marking another major issue in India’s primary market.
The public offering has attracted investor attention after the company raised Rs 743.6 crore from anchor investors before the issue opened. The anchor allocation involved institutional investors and was completed at Rs 159 per share.
The issue comprises a fresh share sale and an offer for sale. The fresh component is aimed at strengthening the company’s financial position, with proceeds earmarked for purposes including repayment of borrowings and working-capital requirements.
The company had also raised around Rs 371.3 crore through a pre IPO placement involving investors including an affiliate of GIC and Dymon Asia, according to market information.
Market sentiment around the issue was positive ahead of its opening, with grey market indications pointing to a premium over the upper end of the price band. However, grey-market pricing is unofficial and does not guarantee listing performance.
The offering comes at a time when India’s primary market remains active, with companies seeking to tap strong institutional and retail participation for expansion, debt management and other corporate requirements.
For LEAP India, the fundraising is expected to support its financial requirements and provide additional flexibility as it expands its logistics and supply-chain operations.
The IPO also provides public-market investors with an opportunity to participate in a company operating in the logistics infrastructure segment, where demand continues to be linked to manufacturing, distribution and organised supply chain activity.
With a sizeable portion of the issue coming through the offer for sale component, investors will also be watching the company’s post-listing performance, financial strength and ability to sustain business growth.