KKR-backed LEAP India's (LEAN.NS) $260 million initial public offering was fully subscribed by midday on the final day of bidding on Tuesday, led by non-institutional investors.
The supply chain firm received bids for 131.86 million shares as of 12:36 p.m. IST, against 114.99 million shares on offer, exchange data showed.
Here are key details:
• Non-institutional investors, which include high-net-worth individuals and corporates, bid for 2.26 times the shares reserved for them, while institutional and retail portions were subscribed 98% and 76%, respectively.
• The company raised 7.43 billion rupees ($77.87 million) from 32 investors, including the Monetary Authority of Singapore and Morgan Stanley, in an anchor round last week.
• The IPO comprises a fresh issue of shares worth $50.3 million and an offer-for-sale of $209.7 million of shares, mostly by KKR-backed Vertical Holdings II.
• Separately, KKR-backed firm Vertical Holdings II sold 3.71 billion rupees worth of shares in LEAP India in a private placement to investors including a unit of Singapore sovereign wealth fund GIC and Matyas Possessiones, backed by founder and managing director Sunu Mathew
• The company plans to deploy at least three million pallets in Gulf countries within four to five years, a target equal to about one-third of its current pallet fleet, as it looks to expand overseas, Mathew told Reuters last week.
• LEAP India is well-positioned to benefit from the country's underpenetrated pallet pooling market, but its demanding valuation makes risk-reward unfavourable, Swastika Investmart said in a note.
• The company is seeking a valuation of $734 million. Shares will begin trading from August 14.
($1 = 95.4200 Indian rupees)
