LEAP India shares fall 12% post-listing, slip below IPO price. What should investors do?
LEAP India shares dropped from their listing price, slipping below the IPO issue price after a modest debut. While analysts highlight the company's leadership in pallet pooling and long-term growth potential, demanding valuations and modest return ratios have led to a Neutral view, with a stop-loss suggested at Rs 155.
Following its IPO listing at Rs 165.90 on the BSE, LEAP India shares experienced a sharp 12.14% decline, trading at Rs 145.85 by the end of the trading day. This marked a notable drop below the initial issue price of Rs 159 and 8.27% below its current market value. Analyst Shivani Nyati of Swastika Investmart Ltd praised LEAP India's strong market position in the pallet-pooling sector, noting its long-term growth potential in an underexplored Indian market.
However, she cautioned that the current valuation is high, limiting the risk-reward ratio. Nyati recommended setting a stop-loss at Rs 155 for investors. LEAP India raised Rs 371.3 crore through a pre-IPO placement from institutions like GIC subsidiary Gamnat Pte Ltd and Dymon Asia, with the remaining Rs 2,000 crore offered for sale by the promoters.
The company plans to utilize a portion of the proceeds to repay existing debt, with the remainder allocated for general corporate expenses.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
