Shares of KKR-backed LEAP India (LEAN.NS) fell 5.3% in their trading debut on Friday, valuing the supply chain logistics firm at 69.18 billion rupees ($725.2 million).
The shares listed at 165.9 rupees apiece on the National Stock Exchange of India, a premium of 4.3% to their issue price of 159 rupees.
Here are key details:
• The KKR-backed firm had received bids for 8.38 times the number of shares on offer in a $260 million IPO
• The IPO comprised a fresh issue of shares worth $50.3 million and an offer-for-sale of $209.7 million, mostly by KKR-backed Vertical Holdings II
• The trading debut comes in a subdued market, with the benchmark Nifty 50 index (.NSEI) down 0.2%
• Retail investors subscribed 1.71 times the shares reserved for them, on valuation concerns, analysts said
• "Declining EBITDA margins despite rapid scale-up, sensitivity to utilisation and asset recovery, and the absence of direct listed peers temper near-term earnings visibility and valuation comfort," Arihant Capital said in a note last week
• Vertical Holdings II sold about $39 million worth of shares in LEAP India in a private placement ahead of the public launch of the IPO
($1 = 95.3900 Indian rupees)
