Two new listings

There were two new listings today – Leap India and Technocraft Ventures where the latter did exceedingly well and the former is lagging into the red. The former saw higher support from QIBs while the latter was driven by HNIs.

Technocraft got listed on the BSE at Rs.285 v/s IPO price of Rs.212 and surged up to Rs.334.69 levels and is now trading at Rs.306 levels.

The IPO had gone very well, subscribing overall 38.69x, with HNIs taking the huge chunk at 65.06x, QIBs at 42.26x and Retail at 25.35x.

Technocraft Ventures is a Delhi-based EPC (engineering, procurement and construction) company undertaking water and wastewater infrastructure projects for water supply, sewerage networks, sewerage treatment plants, wastewater treatment plants, transmission mains, reservoirs, trenchless and micro tunnelling works. This accounts for ~85% of Rs. 345 cr topline, with balance coming from roads and highways, electrical transmission, urban infrastructure.  

In our IPO Analysis, we had concluded - Technocraft Ventures IPO can be avoided for being seen as unattractively priced for regional play and high government orders.

The other listing was Leap India. As against the IPO price of Rs.159, it got listed at Rs.166 but could not sustain there and is now trading in the red at Rs.152.

The IPO did OK, with support coming in mainly from QIBs, subscribing 16.84x, followed by HNIs at 12.64x and Retail at 1.71x, taking overall subscription to 8.38x.

Leap India is a 13 year old Mumbai based company providing on-demand ‘share and re-use’ assets for supply chain management. These assets comprise 9.0 million pallets, 5.7 million containers and 4,743 material handling equipment across a pan-India network of 10,100 customer touchpoints, mainly serving food and beverages, automotive, industrials and third-party logistics sectors.

In our IPO Analysis, we had concluded - Leap India’s business model and IPO pricing are both unconvincing, hence avoid the IPO.