The board has approved Ecom Express’s initial public offering (IPO) of Rs 2,600 crore through a combination of fresh issue and offer for sale, and the logistics company is expected to file a draft red herring prospectus soon.
According to media reports, Ecom Express’s board has approved a special resolution to approve the company’s initial public offering of equity shares totaling Rs 2,600 crore. This offer consists of Rs 1,284 crore for new shares and Rs 1,316 crore for shares for sale.
According to media reports, Kotak Capital, IIFL, Axis Capital, and UBS are among the bankers that the Gurugram-based company has already appointed for the IPO.
According to sources, Warburg Pincus and Partners Group, two significant investors in Ecom Express, are expected to participate in the OFS. According to Media, with 48.26% of the total, Warburg Pincus is the biggest external stakeholder, followed by CDC Group and Partners Ground.
The 13-year-old company is making its second attempt at a public listing. It authorized the issuance of up to Rs 4,860 crore in shares for public offering in February 2022. But at that time, the company decided to postpone its IPO.
Ecom Express is also using a right issue to raise an additional Rs 1,424 crore, or roughly $172 million, from current investors.
Through debt and equity, it has amassed more than $250 million since its founding.
More than 2,700 towns and 27,000 pin codes in India are allegedly served by Ecom Express’s logistics services. It has more than 3,000 facility centers across the nation and employs more than 50,000 people.
Ecom Express saw a 21.9% increase in its operating revenue for the fiscal year that ended in March 2023, from Rs 2,090 crore to Rs 2,548 crore. The company’s losses in FY23 increased from Rs 91 crore to Rs 375 crore, a 4X increase. It has not yet submitted its FY24 figures.
With its stock exchange listing, Ecom Express will be the second Indian startup in the logistics ecosystem. Delhivery, a rival, went public in May 2022. Through a public listing, Flipkart-backed Shadowfax also intends to raise up to Rs 3,000 crore.
