Logistics company Ecom Express has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at up to ₹2,600 crore (approximately USD 310 million). The IPO includes a fresh issue of shares worth ₹1,285 crore, while the remaining ₹1,316 crore will be raised through an Offer for Sale (OFS) by existing shareholders.
Ecom Express, which counts Amazon and Nykaa among its clients, is venturing into the public market at a time when India’s IPO sector has experienced significant activity. By the end of July, over 150 companies have raised nearly USD 5 billion through IPOs. The logistics firm, which competes with Delhivery and Blue Dart, intends to use the proceeds from the fresh issue to set up new processing and fulfilment centres, upgrade its IT infrastructure, and reduce its debt burden.
Prominent stakeholders involved in the OFS include Partners Group’s PG Esmeralda, which is set to sell shares worth ₹931 crore, and Warburg Pincus’s Eaglebay Investment, which will offload shares valued at ₹211 crore. The company’s co-founders and related promoters will also participate in the OFS. Specifically, Kotla Satyanarayana will sell shares worth ₹33 lakh, while Kotla Sridevi and Kotla Rathnanjali will divest shares valued at ₹7.6 crore and ₹1 crore, respectively.
For the fiscal year ending March 31, 2024, Ecom Express reported a net loss of ₹254 crore, a notable improvement from the ₹422 crore loss recorded in the previous year. The company’s operational revenue for the period stood at ₹2,609 crore, marking a slight increase from ₹2,553 crore in the prior year.