As an investor, it can be very challenging to decide whether the Leapfrog Engineering IPO is a good or bad investment. Not anymore, as in this blog, we will provide you with all the necessary details related to the Leapfrog Engineering IPO to help you decide whether you should Apply or Not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.Ā
Strengths:
- The firm is supported by strong management and experienced promoters with 30 years of experience in project management across engineering companies.
- As of December 31, 2025, the company has an order book of ā¹400.27 crore.
- Strong international presence in the Middle East, with the completion of over 14 projects in Kuwait, and continuing to build strong relationships within the industry.
- Highly diversified across industries and geographies, with impressive seasonal stability and consistent long-term growth.
- Over the past 3 years, the company has had a good return on equity (ROE) of 59.3%Ā Ā
Weaknesses:Ā
- The firm runs both its office and assembly unit from leased premises. If leases on the premises are terminated or if the premises have to relocate, it can lead to the temporary closing of work and operations, which can impact the business.Ā
- Most of its revenue comes from the Middle Eastern export markets, especially Kuwait, which exposes them to political, economic, and regulatory risks.
- Around 91.37% of the companyās revenue comes from the top 10 customers. The loss of any of these customers can impact the business and financial operations.
- As of December 2025, the firm has a negative cash flow of ā¹752.22 lakhs. Continuing to have them in the future could negatively affect the business and financial condition.Ā
Leapfrog Engineering IPO ReviewĀ
| Review by | Recommendation |
| IPO Watch | Neutral |
Promoters & Track Records, if anyĀ
- Prabhav Narasimha Rao, aged 56 years, is the Promoter and Managing Director of the company. He holds 4,76,28,000 of Equity shares, representing 44.44% of Pre-Offer equity capital.
- Priyashaila Prabhav Rao, aged 52 years, is the Promoter and Whole-Time Director of the company. She holds 4,56,12,000 of Equity shares, representing 42.55% of pre-Offer equity capital.
Peer Comparison with the Company
| Name of the Company | Face Value (ā¹) | Basic EPS (ā¹) | Diluted EPS (ā¹) | RONW (%) | P/E Ratio | NAV (ā¹) |
| Leapfrog Engineering Service | 1 | 1.57 | 1.57 | 30.47% | 13.37x | 4.97 |
| Konstelec Engineers Limited – Standalone | 10 | 2.83 | 2.83 | 4.34% | 14.82x | 65.34 |
| Engineers India Limited ā Standalone | 5 | 8.28 | 8.28 | 17.76% | 26.21x | 46.62 |
Industry Peer Group P/E ratioĀ
The industry P/E ratio ranges from a low of 14.82, a high of 26.21, and an average of 20.52.
ExpansionĀ
- The proceeds of ā¹27 crore will be used towards setting up the Assembling Unit.
- A fund of ā¹36.05 crore will be utilized towards working capital requirements.
- Some funds will be used for issue-related expenses.
- Lastly, the remaining funds will be utilized towards general corporate purposes.
Leapfrog Engineering IPO ā Should You Apply or Not?
A company that offers all engineering services under one roof ā Leapfrog Engineering Services is coming with its IPO launching on 23rd of April. Leapfrog Engineering Services is an integrated engineering services company that provides EPCC services serving various industries, including Oil and Gas, Food processing, Pharma, Metals, and chemicals. Moreover, very recently, the company also started working in the water and robotics sector as well.Ā
Coming to its financials, in FY25, the firm generated a revenue of ā¹137.37 crore from operations, with PAT standing at ā¹16.22 crore. In spite of a decline in revenue growth for the past few years, the company has shown strong revenue growth. Around 80% of the revenue comes from the international market with its projects in Kuwait, Oman, and Abu Dhabi as well, while 20% from the domestic market.
Leapfrog on the upper price band, valued at a P/E of 13.37x. Compared to the industryās PE, the IPO is priced attractively and fairly. As of April 21st, the GMP of Leapfrog Engineering IPO is ā¹0.Ā
My verdict: The firm operates in a highly competitive sector, which can impact its margins. However, due to its sound financials, growing international presence, and strong order book, investors should consider applying with a medium to long-term perspective. Investors wants short-term gains can apply for this IPO after evaluating GMP and subscription numbers.
Please note:Ā
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyās RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
