Banking on the Indian startup IPO frenzy, logistics tech provider Leap India has now set sail for D-Street. The 2013-founded company filed its Draft Red Herring Prospectus (DRHP) last week for an INR 2,400 Cr public listing.

Leap is primarily a pallet pooling player, enabling manufacturers to reduce their trucking and cargo costs by pooling their goods with other players. This ensures optimal capacity in the vehicles while also reducing the costs for manufacturers, who would otherwise have to pay the cost for the full load even for smaller shipments.

While the listing will comprise a fresh share sale of up to INR 400 Cr and an offer for sale (OFS) component of up to INR 2,000 Cr, the key question is how attractive a proposition Leap India really is.

Before we get to answering this, let’s talk about the company’s post-IPO vision. Leap India’s IPO playbook is clear — clean up the balance sheet and fuel the next phase of growth. The company plans to use a significant chunk of its fresh issue proceeds, nearly INR 300.1 Cr, to pare its borrowings, which stood at INR 873.6 Cr as of May 31, 2025.

By cutting debt, Leap India aims to ease interest costs, improve its debt-to-equity position, and gain greater financial flexibility. The rest of the capital will be used for general corporate purposes, giving the company room to strengthen operations and capture new growth opportunities.

Notably, the company benefits from strong structural support from the logistics sector, a growing palletisation market, and growing authority in the asset pooling segment. All of this may paint a rosy picture, but market analysts believe Leap India’s IPO will likely draw cautious optimism.

Why, you ask? Well, Leap India reported a flat net profit of INR 37.5 Cr in the financial year ended March 2025, compared to INR 37.1 Cr in FY24, despite enjoying strong revenue momentum.

“Investors may participate if valuations are sensible, but enthusiasm will likely be measured rather than........

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