Leapfrog Engineering Shares to List on BSE SME Today: Check GMP

Leapfrog Engineering Services is all set to make its official debut on the BSE SME platform this Wednesday. While institutional investors showed significant enthusiasm during the bidding process, the grey market suggests a cautious start for the engineering firm.

Muted Grey Market Activity Ahead of Debut

As the listing day approaches, all eyes are on the Grey Market Premium (GMP) to gauge investor sentiment. Currently, the grey market is signalling a muted debut, with shares commanding no premium in the unofficial market. This indicates that the stock is likely to list around its issue price of Rs 23 per share. Investors are reminded that GMP is an unofficial metric and does not serve as a guaranteed indicator of the actual listing-day performance.

The Rs 88.51-crore IPO saw a total subscription of 2.70 times during its three-day bidding window, but a deeper look at the categories reveals a polarized response. The Qualified Institutional Buyers (QIB) segment showed massive confidence, being subscribed 20.32 times. Similarly, the Non-Institutional Investor (NII) category was booked 5.10 times.

In contrast, the retail portion remained undersubscribed at 0.84 times, suggesting that individual investors may be waiting for more price clarity before committing capital. The total issue size consists of a fresh issue of Rs 79.60 crore and an Offer for Sale (OFS) amounting to Rs 8.91 crore.

Business Profile and Utilization of Funds

Founded in 2005, Leapfrog Engineering Services is an established player in the integrated engineering, procurement, project management, and construction (EPCC) space. The company serves critical sectors including oil and gas, food processing, pharmaceuticals, and metals. Their expertise spans electrical systems, industrial automation, and fire protection.

The company has a robust operational foundation with an order book valued at approximately Rs 384 crore as of March 31, 2026. The proceeds from the fresh issue of Rs 79.60 crore are earmarked for strategic growth, specifically for setting up an assembling unit, funding working capital requirements, and addressing general corporate purposes.

Financial Performance and Growth Trajectory

Leapfrog’s financial metrics reflect steady profitability. For the fiscal year 2025, the company reported a total income of Rs 137.37 crore with a Profit After Tax (PAT) of Rs 16.22 crore. The momentum appears to have continued into the current cycle, with the company posting a revenue of Rs 105.05 crore and a net profit of Rs 14.18 crore in the nine months ended December 2025. With a workforce of 112 permanent employees and 60 contractual staff, the company is positioned to scale its EPC project execution both in India and overseas.

Key Takeaways

  • Muted Listing Expected: With zero premium in the grey market, the shares are likely to debut near the issue price of Rs 23.
  • Institutional Backing: While retail interest was low (0.84x), QIBs showed strong conviction with 20.32x subscription.
  • Strategic Growth: IPO proceeds will primarily fund a new assembling unit and strengthen working capital to support a Rs 384 crore order book.