A Bengaluru-based integrated EPCC engineering company with a Rs 384 crore order book plans to raise Rs 84.08 crore via the BSE SME platform.
Leapfrog Engineering Services Ltd., an integrated Engineering, Procurement, Construction, and Commissioning (EPCC) company, opens for subscription on June 17 with the issue closing on June 19. The company is listing on the BSE SME platform. This is one of the larger SME IPOs of the season at Rs 84.08 crore.
What the Company Does
Leapfrog Engineering provides EPCC services predominantly to the Oil & Gas sector, with a strong export orientation toward the Middle East — particularly Kuwait, where it has executed over 14 projects in the last decade. As of March 31, 2026, its outstanding order book stood at Rs 384.03 crore, of which Rs 327.14 crore (85%) is from export markets and only Rs 56.89 crore from domestic markets.
The order book is approximately 2.8x its FY25 revenue, providing meaningful near-term visibility. The company operates primarily from Karnataka and Maharashtra domestically and serves overseas clients in the GCC region.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 17, 2026 |
| Issue Closes | June 19, 2026 |
| Listing | BSE SME (June 24, 2026) |
| Price Band | Rs 21 – Rs 23 per share |
| Face Value | Re 1 |
| Issue Size | Rs 84.08 crore |
| Fresh Issue | Rs 75.17 crore |
| OFS | Rs 8.91 crore |
| Lot Size | 6,000 shares (min 2 lots = 12,000 shares) |
| Min. Retail Investment | Rs 2,76,000 |
| BRLM | Finshore Management Services Ltd. |
| Registrar | Integrated Registry Management Services Pvt. Ltd. |
| Market Maker | Anant Securities |
Note the face value is Re 1, not Rs 10 — unusual for an SME issue. This results in a high share count but a low share price, with the minimum retail investment in line with other SME issues at Rs 2.76 lakh.
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Revenue | 105.38 | 162.88 | 137.37 | — |
| EBITDA | 1.01 | 19.73 | 21.57 | — |
| EBITDA Margin | 0.96% | 12.11% | 15.70% | 19.56% |
| PAT | 0.28 | 16.39 | 16.22 | — |
| PAT Margin | 0.27% | 10.06% | 11.81% | 14.04% |
The financials tell a complex story. Revenue grew 55% from FY23 to FY24, then fell 16% in FY25 — indicating the EPCC order cycle is lumpy and non-linear. PAT went from near-zero in FY23 to Rs 16.39 crore in FY24 and held broadly flat at Rs 16.22 crore in FY25 despite the revenue decline, reflecting margin improvement.
The operating cash flow picture is a concern: net outflow of Rs 17.15 crore in FY25 and Rs 1.16 crore in FY24 — the business has not generated positive operating cash flows despite reporting profits. Debtor days have stretched to 293, reflecting the extended payment cycles characteristic of large infrastructure projects. At Rs 23 upper band, the P/E is approximately 14.65x on FY25 earnings.
BRLM Track Record: Of the last 10 listings managed by Finshore Management, 6 listed at a discount and 2 at par — a poor record that investors should factor in.
Risks to Consider
Revenue concentration is extreme — the top 10 customers contributed 85.49% to 99.32% of revenue across reporting periods. The Oil & Gas sector, which drove 90.85% of revenue in FY24, fell to just 11.29% in FY25 before rebounding — indicating high revenue volatility from sectoral swings. Negative operating cash flows despite profitable operations is a structural concern. Debtor days of 293 are very high. The heavy export dependency on the Middle East exposes the company to geopolitical risks, foreign exchange movements, and overseas project execution challenges.
Analyst View
Analysts note the company operates in a highly competitive segment, and while the order book provides near-term revenue visibility, the issue appears fully priced based on recent financial data. .