Leap India Ltd. IPO

LEAP India

• LEAP India is coming out with a 100% book building; initial public offering (IPO) of 16,42,38,410 shares of face value Rs 1 each in a price band Rs 151 -159 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 07, 2026 and will close on August 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 151 times of its face value on the lower side and 159 times on the higher side.
• Book running lead managers to the issue are JM Financial, Avendus Capital, IIFL Capital Services and UBS Securities India.
• Compliance officer for the issue is Chirag Bagadia. 

Profile of the company

The company is the largest on-demand asset pooling provider in India’s supply chain management sector (based on the number of pooled Assets). It offers pallets (which are flat carrier structures, that support goods in a stable manner while being handled by forklifts, pallet jacks, or conveyors), containers and material handling equipment (MHE) (which are equipment used in managing a warehouse) to customers for their supply chain needs. Its circular business model supports its customers while reducing environmental impact and enhancing the time and cost efficiency and safety of supply chains for its customers across India. Its service offerings encompass technology-enabled supply chain solutions that suit customer requirements across industries. Its solutions help customers to connect different stages of their own value chain, from the point of manufacturing to distribution of goods all the way to the point of sale (retail).

Through its large asset base and pan-India network, it is able to serve a diverse customer base spanning sectors such as fastmoving consumer goods (FMCG), food and beverage (F&B), third-party logistics (3PL), e-commerce and quick commerce, automotive, industrials and others. It leverages technology to deliver its solutions to its customers. ITs in-house developed MyLEAP platform provides customers with an interface which highlights order information for tracking and management, details of recent orders, options for swapping damaged Assets, reports, as well as offering options for help and support. It has integrated SAP S/4HANA and Salesforce Management into its systems, enabling electronic data interchange with customers. For tracking capabilities, it utilizes passive radio frequency identification (RFID) technology, allowing for monitoring of containers throughout the supply chain.

For its material handling equipment, it has implemented IoT or passive RFID solutions in forklifts, enabling tracking of forklift movements at customer locations which helps with better navigation of equipment and enhanced safety. Additionally, it has developed a suite of in-house mobile and web applications, including the RFID App, Asset Audit App, Transport Management System and Proof of Delivery (POD) App, each designed to address requirements such as asset verification, inventory management, and proof of delivery.

Proceed is being used for: 

• Repayment / prepayment, in full or in part, of certain borrowings availed of by the company
• General corporate purposes

Industry overview

India’s supply chain ecosystem has transformed into a strategic pillar of manufacturing and export growth with integrated, digitally enabled network covering procurement, production, warehousing, and delivery. This evolution is driven by structural reforms, large-scale infrastructure investments, and rising industry expectations for speed, scale, and resilience. As India integrates further into global value networks (GVNs), domestic companies are upgrading supply chains to meet international benchmarks on reliability, traceability, and ESG compliance.

India’s logistics cost stands at 14% of GDP (CY 2025), nearly twice that of developed economies such as North America (8.0%), European Union (8.0%), and Australia and New Zealand (8.5%), encompassing transportation, warehousing, inventory management, packaging, and other supply chain activities. This highlights inefficiencies in both freight and storage segments. In contrast, developed nations benefit from standardized logistics ecosystems featuring uniform vehicle specifications, advanced route planning systems, seamless multimodal integration, and technology adoption enabling automation. These practices enable faster goods movement, lower inventory costs, and greater operational predictability. Additionally, extensive palletization and racking automation enhance inventory handling, reduce reliance on manual labour, and improve large-scale warehouse efficiency.

India’s supply chain growth, fuelled by expanding trade and domestic consumption, underlines the need for modernization to avoid rising inefficiencies. Sectors such as food and beverages, e-commerce, and retail face elevated logistics costs due to cold chain requirements, fast delivery cycles, and complex distribution footprints. Automotive and industrial players, on the other hand, rely on precision-oriented supply chains with just-in-time (JIT) and multimodal transport, requiring highly reliable warehousing and efficient freight movement. 

Pros and strengths 

Industry with multi-decadal and rapid growth story: India’s logistics sector is characterized by high costs, largely due to fragmented supply chains, manual handling and inefficient transportation systems. These challenges are prompting companies in India to seek modern solutions, with supply chain mechanization and automation becoming increasingly attractive and palletization emerging as a strong element in this transformation. Further, an increase in population drives higher consumption, which in turn elevates demand and necessitates greater production. This growing need compels companies to adopt vertical expansion strategies, such as transitioning to Grade A facilities. The expansion of Grade A warehousing and the shift towards vertical stacking are increasing demand for standardized, high-quality pallets that enable efficient space utilization and safe, compact storage. Rising automation in the supply chain further reinforces the need for uniform pallets and reusable containers, which ensure compatibility with automated systems, optimize efficiency and reduce manual intervention. The rapid growth of end-use markets such as FMCG, F&B, 3PL, e-commerce and quick commerce, automotive and industrials, is accelerating the adoption of palletization to support scalable, reliable, and cost-efficient supply chain operations.

Trusted supply chain partner equipped to meet evolving customer needs with a focus on quality and sustainability: The company is dedicated to building an efficient supply chain by directly addressing the key challenges faced by its customers. It ensures timely delivery and product quality, which are pillars of effective supply chain management. Its pooling solutions enable customers to operate through an asset-light model, where they can hire and de-hire Assets saving capital expenditure that could be reinvested into their primary businesses. This allows customers to avoid the upfront procurement costs and follow on maintenance expenses associated with owning pallets, containers, and MHEs. Its pooling model provides customers with access to a large, standardized pool of pallets and containers. Standardization ensures compatibility with automated and mechanized supply chain processes, reduces the risk of product damage, and supports efficient stacking and storage in warehouses. Customers benefit from consistent asset quality and availability, supporting smoother operations and more reliable supply chain performance. Further, maintenance and repairs are handled by its quality and repairs team, reducing downtime and making asset management easier for customers. Its model is also flexible, and customers can scale pallet volumes up or down on-demand, to match their requirements.

Highly resilient business model with blue-chip customer base across high growth sectors: Its business is anchored by a diverse end-use customer base that spans multiple high-growth and stable sectors, including FMCG, F&B, 3PL, e-commerce and quick commerce, automotive and industrials and others. These sectors have shown sustained growth and remained relatively resilient to economic downturns. This ensures steady demand for its solutions even during periods of macroeconomic volatility. This sectoral diversification not only supports consistent asset utilization throughout the year but also allows it to balance demand across different business cycles, maximizing operational efficiency and reducing exposure to sector-specific risks.

Efficient asset management capabilities: Its approach to asset management and customer service is built on a foundation of technology-driven processes and a commitment to operational efficiency. It was the first company in India to introduce passive RFID-tagged containers. It is also in the process of tagging CHEP acquired Assets with passive RFID tags. Passive RFID allows for real-time tracking and improved asset management practices throughout the supply chain. Its MHE fleet is IoT enabled, allowing for detailed tracking of forklift movements at customer locations and providing operational insights. Furthermore, it has implemented tracking systems for the benefit of its customers which is accessible through the MyLEAP platform, a digital portal that offers customers a user-friendly interface for real-time asset tracking, inventory management, and access to relevant pallet-related information and actions.

Risks and concerns

High dependence on pallet pooling revenue: Majority of its revenue from operations is derived from its pallets (its pallets contributed to 62.17%, 67.90% and 72.23% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively). Any adverse developments affecting the pallet pooling market including increased competition, changes in customer preferences, regulatory shifts, or technological disruptions could impact its business. For instance, if one of its key customers reduces its reliance on pooled pallets, switches to alternative solutions, or negotiates less favorable terms, the resulting loss of revenue may not be offset by gains in its other business segments. Similarly, broader industry trends, such as a decline in demand for pooled pallets due to supply chain restructuring or the adoption of new supply chain solutions, could materially affect its financial results.

Dependence on key suppliers and service providers: The company depends on suppliers and service providers in relation to its operations (including for purchase of its Assets and for ancillary services such as transportation). Its top ten suppliers and service providers contributed 63.27%, 60.00% and 77.00% of its total purchases in Fiscals 2026, 2025 and 2024, respectively. Although it typically procures its Assets from more than one supplier to reduce dependency on any one supplier, there can be no assurance that it will be able to continue to do so in the future. Additionally, there is no assurance that it will be able to locate alternative suppliers of the same quality if these arrangements are terminated. Further, while it typically strives to pass on price increases to consumers, it may be unable to pass all of such increases in costs onto its consumers. Any loss of suppliers or interruptions in the timely delivery of supplies and services could have an adverse impact on its business, financial condition, cash flows and results of operations.

Revenue is dependent on continued relationships with key customers: The company derives a portion of its revenue from operations from its top customers, and accordingly, its future revenues will be dependent upon the successful continuation of its relationships with these customers or finding customers of similar size and scope. The company’s top ten customers contributed 26.65%, 34.18% and 39.49% of its total revenue from operations in Fiscals 2026, 2025 and 2024, respectively. The loss of any of its key customers, due to limitation to meet any change in quality specification, change in technology, dispute with customer, better prices by its competitors, its inability to renew its contracts with them or a decision by any one of them to reduce the services it provides to them would result in a decline in its revenues.

Disruptions to IT systems could adversely affect business: Its success depends on its information technology systems used for its operations and on their reliability and functionality. The reliability and functionality of these systems can be affected by numerous factors, including, but not limited to, the increasing complexity of the information technology (IT) systems, frequent change and short life span due to technological advancements and data security. It is dependent on its in-house and third-party technologies and software for various functions including its billing activities. Any disruption or failure of its technology infrastructure could materially affect its growth prospects, reputation, business, results of operations, financial condition and cash flows.

Outlook

LEAP India and its subsidiary are engaged in the business of pooling of resources for providing customised and best in class services to automotive sector and Fast-Moving Consumer Goods (FMCG) industry in the supply chain arena. It offers pallets, containers and material handling equipment to customers for their supply chain needs. On the concern side, its operations are exposed to volatility in the supply and pricing of raw materials such as timber and plastic, which are critical raw materials for pallets and containers, respectively. It does not directly source timber or plastic itself and its pallet and container suppliers are responsible for procuring the raw materials required to manufacture the pallets and containers that it utilizes. However, it actively ensures the quality of its Assets supply by providing its suppliers with benchmarks and guidelines regarding timber and plastic quality. This ensures that the Assets supplied to it meet its operational standards and customer expectations. 

The issue has been offering 16,42,38,410 shares in a price band of Rs 151- 159 per equity share. The aggregate size of the offer is around Rs 2480.00 crore to Rs 2611.39 crore based on lower and upper price band respectively. Minimum application is to be made for 94 shares and in multiples thereon, thereafter. On performance front, its total income increased by 54.08% from Rs 4,850.31 million in Fiscal 2025 to Rs 7,473.55 million in Fiscal 2026. Its profit after tax increased by 65.99% from Rs 375.58 million in Fiscal 2025 to Rs 623.41 million in Fiscal 2026.

Meanwhile, its portfolio includes a diverse range of Assets such as pallets, containers and MHEs, among others. It is continually expanding its product range to better serve its customers. For example, it has added items such as belts, wedges, stillages, and racking to its offerings. With its extensive selection, customers no longer need to coordinate with multiple suppliers for their pallets, containers, MHEs, and other supply chain Assets, which streamlines their operations and reduces management complexity. It plans to continue making strategic investments across multiple asset categories and further strengthen its leadership position in the market. It is committed to building a comprehensive product ecosystem that encompasses key Assets utilized throughout the supply chain.