Leapfrog Engineering IPO

Leapfrog Engineering Services (LESL) is a 20-year-old EPCC player specializing in electrical, automation, and safety systems. They are hitting the market to raise Rs. 88.51 cr via an IPO (priced at Rs. 21-23), aiming to fund a new assembly unit and boost working capital. While their order book of Rs. 400.27 cr looks healthy, their financial history is a mixed bag. The company saw a suspicious "quantum jump" in profits from FY24, yet total revenue actually declined in FY25, casting doubt on long-term sustainability. At a P/E of 17.29 based on annualized FY26 earnings, the stock seems fully priced rather than a bargain. Furthermore, the lead manager, Finshore Management, has a weak track record, with most of their recent mandates listing at a discount or flat. Given the questionable earnings surge and lacklustre history of the merchant banker, investors should approach this SME IPO with extreme caution.