This supply chain company wants to raise ₹2,400cr via IPO
What's the story
Leap India, a supply chain solution and pallet rental company backed by global investment firm KKR, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise ₹2,400 crore through an initial public offering (IPO). The IPO will consist of a fresh issue of shares worth ₹400 crore and an offer-for-sale (OFS) component worth ₹2,000 crore by its promoters.
Share sale
OFS to include significant shareholding by KKR
The share sale under the OFS will be led by Vertical Holdings II, which is owned and controlled by KKR Asia Pacific Infrastructure Holdings II (KAPH II). It plans to sell shares worth ₹1,998.6 crore. KIA EBT Scheme 3 (acting through its trustee Catalyst Trusteeship) will also sell shares worth ₹1.38 crore as part of the offer-for-sale.
Funding details
Company may raise ₹80cr in pre-IPO round
Mumbai-based Leap India is considering raising up to ₹80 crore in a pre-IPO round. This would reduce the size of the fresh issue accordingly. The company has a shareholding structure where promoters Vertical Holdings II and Sunu Mathew hold 95.28% stake, while public shareholders including Sixth Sense India, First Bridge India, and Madhurima International hold the remaining 4.79%.
Financials
Profit grows marginally in FY25
For the year ending March 2025, Leap India posted a profit of ₹37.6 crore, up just 1% from ₹37.2 crore in the previous fiscal year despite a healthy topline. Revenue during this period grew by 27.8% to ₹466.5 crore from ₹365 crore in FY24. EBITDA (earnings before interest, tax, depreciation and amortization) soared 25.8% YoY to ₹255 crore but margin declined by 94bps to 54.66%.