The regulator issued its observations during the Week ended December 5. In SEBI's parlance, issuance of observations is a nod to proceed with the public issue.

LEAP India filed its draft red herring prospectus (DRHP) with SEBI in August for an IPO that is proposed to comprise a fresh issue of shares worth INR 400 Cr along with an offer for sale (OFS) component of up to INR 2,000 Cr.

The OFS component is primarily comprised of an INR 1,998.6 Cr stake sale by promoter entity Vertical Holdings II, while promoter group entity KIA EBT Scheme 3 plans to offload shares worth around INR 1.38 Cr. The company may also consider a pre-IPO placement of up to INR 80 Cr.

Founded in 2013, LEAP India is a sustainable supply chain solutions provider, specialising in pooling reusable packaging for companies to reduce logistics waste. The Mumbai-based startup offers end-to-end supply chain management, integrating IoT and data analytics for efficient warehousing, transportation, and real-time asset visibility.

The company serves sectors including FMCG, beverages, ecommerce, automotive and retail. It claims to have about 8.8 Cr pallets and 40,000 containers in circulation, supported by a nationwide network of over 20 warehouses and service centres.

The company operates in a booming pallet pooling market, which is expected to grow at a CAGR of 13.6% between FY25 to FY30, driven by increased palletisation and deeper adoption of pallet pooling solutions.

The further market opportunity in this market can be gauged from the fact pooled pallets currently account for only 9% of India's total pallet market.

On the financial front, Leap India reported a flat net profit of INR 37.5 Cr in FY25, up marginally from INR 37.1 Cr PAT reported in FY24. Meanwhile, the company's top line for the fiscal year recorded a 28% jump to INR 466.4 Cr from INR 364.9 Cr in FY24.