Partners Group to sell stake worth Rs 931 Cr Partners Group to sell Rs 931 Cr stake in Ecom Express DRHP
The Security Exchange Board of India (SEBI) has received the draft red herring prospectus (DRHP) from logistics company Ecom Express in preparation for an initial public offering (IPO).
Through a new equity share offering valued at up to Rs 1,284.5 crore and an offer for sale (OFS) of equity shares valued at up to Rs 1,315.5 crore, the company plans to raise RS 2,600 crore through an initial public offering (IPO).
During the offer for sale, Warburg Pincus and BII (formerly CDC Group) will sell shares worth Rs 211 crore and Rs 137 crore, respectively, while Partners Group will offload shares worth up to Rs 931 crore.
According to the filing, Partners Group holds the largest stake (49.76%), followed by Warburg Pincus and British International Investment (BII), with 27.13% and 10.03% of the shares, respectively.
According to the DRHP, the issue’s book-running lead managers are IIFL Securities Limited, Axis Capital, Kotak Investment, and UBS Securities India.
This is the 13-year-old company’s second attempt at going public. It gave its approval in February 2022 for a public share offering that could raise up to Rs 4,860 crore. The company did, however, postpone its IPO plan at that time.
Through a right issue, Ecom Express is also raising Rs 1,424 crore, or roughly $172 million, from current investors. Through equity and debt, it has amassed more than $250 million since its founding.
In more than 2,700 towns and 27,000 pin codes throughout India, Ecom Express offers logistics services. The company shipped 514 million goods in 2024 compared to Delhivery, its rival, who shipped 740 million during the same time.
Crucially, of the 514 million shipments processed in FY24, 81.79% came from Tier 2 cities, while 10.52% and 7.69% went to Metro and Tier 1 cities.
The logistics company’s revenue was flat during the previous fiscal year, but expenses were significantly reduced. From Rs 2,554 crore in FY23 to Rs 2,609 crore in FY24, it reported a slight 2.1% increase in revenue. Its losses during that time decreased by 40% to Rs 256 crore.
