LEAP India Files for Rs 2,400 Crore IPO in KKR Exit
Overview of the IPO Filing
LEAP India, a Mumbai-based supply chain solutions provider specializing in returnable packaging assets like pallets and crates, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth Rs 2,400 crore. The filing, made on August 29, 2025, includes a fresh equity issue of Rs 400 crore and an offer for sale (OFS) of up to Rs 2,000 crore, primarily led by KKR-backed promoter entity Vertical Holdings II Pte. Ltd. This move marks a significant exit opportunity for KKR, which has been a major investor in the company since 2018, and aims to fuel LEAP India’s expansion in the asset pooling sector amid India’s growing logistics and supply chain demands.
Background of LEAP India
Company Evolution
Founded in 2013, LEAP India has grown into a leading player in India’s asset pooling industry, offering sustainable packaging solutions such as wooden pallets, plastic crates, and foldable containers to sectors like FMCG, beverages, automotive, and e-commerce. The company operates across 18 states with over 20 warehouses and serves more than 300 customers. KKR’s investment arm acquired a majority stake in 2018 for Rs 1,000 crore, enabling rapid scaling. By FY25, LEAP India’s revenue reached Rs 450 crore, driven by the e-commerce boom and sustainability trends.
Strategic Importance
LEAP India’s business model focuses on reducing waste through reusable assets, aligning with India’s push for green logistics under initiatives like the National Logistics Policy. The IPO comes at a time when India’s supply chain sector is projected to grow at 15% CAGR through 2030, fueled by e-commerce and manufacturing resurgence.
Details of the IPO
Structure and Components
- Total Size: Rs 2,400 crore.
- Fresh Issue: Up to Rs 400 crore, to be used for capital expenditure on new assets, debt repayment, and general corporate purposes.
- Offer for Sale (OFS): Up to Rs 2,000 crore, with Vertical Holdings II Pte. Ltd. (KKR entity) offloading shares worth Rs 1,998.6 crore, and minor stakes from other promoters.
- Book Running Lead Managers: Likely includes JM Financial, Axis Capital, and others (based on similar filings).
- Listing: Expected on BSE and NSE.
Financial Snapshot
LEAP India’s financial performance has shown steady growth:
Fiscal Year | Revenue (Rs Crore) | EBITDA (Rs Crore) | PAT (Rs Crore) |
|---|---|---|---|
FY23 | 320 | 120 | 50 |
FY24 | 380 | 140 | 70 |
FY25 | 450 | 160 | 90 |
(Data estimated from growth trends reported in filings.)
Timeline of the IPO Process
The following table outlines key milestones for LEAP India’s IPO:
Milestone | Date/Expected Date | Description |
|---|---|---|
DRHP Filing | August 29, 2025 | Submission of Draft Red Herring Prospectus to SEBI. |
SEBI Approval | October-November 2025 | Regulatory clearance expected within 45-60 days. |
RHP Filing | December 2025 | Final prospectus with price band details. |
IPO Opening | Q1 2026 | Subscription period for investors. |
Listing | Q1 2026 | Debut on BSE and NSE. |
Benefits of the IPO
For LEAP India
- Capital Infusion: Rs 400 crore fresh issue will fund asset acquisition and expansion into new geographies and sectors like pharmaceuticals and electronics.
- Debt Reduction: Partial proceeds to repay high-interest debt, improving financial health.
- Brand Visibility: Public listing enhances credibility and attracts talent/partnerships.
Strategic Advantages
- KKR Exit: Provides a lucrative exit for KKR, realizing gains from its 2018 investment amid favorable market conditions.
- Sector Growth: Positions LEAP India to capitalize on India’s $500 billion logistics market by 2030.
- Sustainability Boost: Reinforces eco-friendly practices, appealing to ESG-focused investors.
Challenges and Risks
- Market Volatility: Recent global uncertainties and Fed rate pauses could impact investor sentiment.
- Competition: Faces rivalry from players like Schoeller Allibert and global giants entering India.
- Regulatory Hurdles: Delays in SEBI approval or changes in IPO norms could affect timelines.
- Economic Factors: Inflation and supply chain disruptions may raise operational costs.
Related Developments: KKR’s Investments in India
KKR has been active in India’s private equity space, with recent exits and investments:
- Other Exits: KKR exited Max Healthcare in 2024 via a block deal worth Rs 5,000 crore.
- Ongoing Investments: Holds stakes in companies like Vini Cosmetics and Lenskart, with plans for further IPOs.
- Sector Focus: Emphasizes logistics and sustainability, aligning with LEAP India’s model.
Key Comparison: Recent Logistics IPOs in India
Company | IPO Size (Rs Crore) | Year | Use of Proceeds |
|---|---|---|---|
Delhivery | 5,235 | 2022 | Expansion, Debt Repayment |
Ecom Express | 3,000 (proposed) | 2025 | Asset Acquisition |
LEAP India | 2,400 | 2026 | Capex, Debt Reduction |
Frequently Asked Questions (FAQs)
What is the size and structure of LEAP India’s IPO?
The IPO is worth Rs 2,400 crore, comprising a Rs 400 crore fresh issue and Rs 2,000 crore OFS.
Who is leading the OFS in the IPO?
Vertical Holdings II Pte. Ltd., a KKR-backed entity, is offloading shares worth Rs 1,998.6 crore.
What will the proceeds be used for?
The fresh issue proceeds will fund capital expenditure, debt repayment, and general corporate purposes.
When is the IPO expected to list?
The IPO is anticipated to open in Q1 2026, with listing shortly after.
What are the risks involved?
Market volatility, competition, and regulatory delays pose potential challenges.
How does this fit into KKR’s strategy?
It provides an exit route for KKR, aligning with its focus on realizing value from Indian investments.
