SUMMARY
- Logistics firm Ecom Express has filed its DRHP with the SEBI for its IPO following the company board’s approval.
- The company aims to raise Rs 2,600 crore through its IPO in a combination of fresh equity share issues totaling up to Rs 1,284.5 crore and an OFS of up to Rs 1,315.5 crore in equity shares.
- Partners Group is set to offload shares worth up to Rs 931 crore, while Warburg Pincus and BII will sell shares worth Rs 211 crore and Rs 137 crore, respectively, during the OFS.
Updated: August 16 2024
Logistics firm Ecom Express has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) following the company board’s approval for the IPO.
Partners Group is set to offload shares worth up to Rs 931 crore, while Warburg Pincus and BII (formerly known as CDC Group) will sell shares worth Rs 211 crore and Rs 137 crore, respectively, during the offer for sale.
At the time of filing, Partners Group is the leading shareholder with 49.76% of the shares, followed by Warburg Pincus and BII (British International Investment ) with 27.13% and 10.03%, respectively.
In FY24, the company handled 514 million shipments, surpassing its competitor Delhivery‘s 740 million shipments during the same period. Crucially, out of the 514 million shipments processed in FY24, 81.79% were from Tier 2 cities, with Metro and Tier 1 cities accounting for 10.52% and 7.69%, respectively.
The company reported stable revenue in the latest fiscal year, and managed to significantly reduce its operational expenses. It achieved a 2.1% increase in revenue to Rs 2,609 crore in FY24, compared to Rs 2,554 crore in FY23. Additionally, its losses declined 40% to Rs 256 crore during the same period.
August 14 2024
Logistics company Ecom Express has received board approval for its initial public offering (IPO) valued at INR 2,600 crore. The IPO will include a mix of a fresh issue worth INR 1,284 crore and an offer for sale (OFS) amounting to INR 1,316 crore, as per internal documents accessed by Entrackr.
The Gurugram-based firm has reportedly appointed leading financial institutions, including Kotak Capital, IIFL, Axis Capital, and UBS, to manage the IPO. Major investors, Warburg Pincus and Partners Group, are expected to participate in the OFS.
This IPO marks Ecom Express’s second attempt to go public, following a previous effort in February 2022, where the company had approved a fundraise of up to INR 4,860 crore but later put the plans on hold.
In addition to the IPO, Ecom Express is also raising INR 1,424 crore (approximately $172 million) through a rights issue from existing investors. Since its founding, the company has raised over $250 million through a combination of equity and debt.
Ecom Express provides logistics services across more than 2,700 towns and 27,000 pin codes in India, employing over 50,000 people with more than 3,000 facility centers nationwide.
In the fiscal year ending March 2023, Ecom Express reported a 21.9% increase in revenue from operations, reaching INR 2,548 crore, up from INR 2,090 crore in FY22. However, the company’s losses escalated by four times, totaling INR 375 crore in FY23, compared to INR 91 crore in the previous fiscal year. The company has yet to file its financial results for FY24.
Ecom Express will be the second logistics startup in India to be listed on the stock exchange, following Delhivery’s IPO in May 2022. Competitor Shadowfax, backed by Flipkart, is also planning a public listing, aiming to raise up to INR 3,000 crore.
Source: Entrackr
