KKR-backed LEAP India falls in trading debut, valued at $725 million

According to Business Recorder, shares of KKR-backed LEAP India fell 5.3% on Friday, their first day of trading, giving the supply chain logistics business a valuation of 69.18 billion Indian rupees ($725.2 million). The stock first traded at 165.9 rupees on the National Stock Exchange of India, a 4.3% premium over the 159 rupee issue price.

The $260 million initial public offering drew bids for 8.38 times the shares on offer. The offering combined $50.3 million in new shares with $209.7 million in existing shares sold by holders, most of it by Vertical Holdings II, which is backed by KKR. Before the public launch, Vertical Holdings II also placed about $39 million of LEAP India shares privately.

Trading began while the broader Indian market was weak, with the Nifty 50 benchmark sliding 0.2%. Retail buyers took up 1.71 times their reserved allocation, which analysts linked to doubts about valuation. Arihant Capital, in a note last week, cited falling EBITDA margins despite fast expansion, sensitivity to capacity utilisation, asset recovery, and the lack of directly listed peers as weighing on near-term profit visibility and the valuation.