• IPO and proceeds: The ₹2,480 crore issue consists of a ₹480 crore fresh issue and a ₹2,000 crore OFS, with ₹360 crore allocated to pare down debt to 0.4–0.5x and ₹120 crore for growth.
• Industry growth runway: Pallet pooling penetration in India is only 15–17% compared to 95–96% in developed markets, providing a large runway for the company, which holds an estimated 90% market share.
• Profitability and margins: The company has delivered EBITDA margins between 46% and 56% over the last decade, reaching 50.69% after integrating its ₹750 crore Chep India acquisition, and has remained PAT positive for six years.
• Asset pooling economics: Management justifies its 19–20x EV/EBITDA valuation by highlighting 43% growth over four years, perpetual pallet lifespans of 45–50 years, and customer-funded maintenance costs.