Logistics firm Ecom Express is nearing the filing of its draft red herring prospectus after securing board approval for an initial public offering (IPO) worth ₹2,600 crore. This IPO will be a combination of a fresh issue and an offer for sale (OFS).
Ecom Express’ board has passed a special resolution to move forward with the IPO, comprising ₹1,284 crore in fresh issue and ₹1,316 crore through an OFS. Media reports indicate that the Gurugram-based company has already appointed bankers, including Kotak Capital, IIFL, Axis Capital, and UBS, to manage the IPO.
Sources suggest that major investors Warburg Pincus and Partners Group are likely to participate in the OFS. Data from the intelligence platform TheKredible reveals that Warburg Pincus holds the largest external stake at 48.26%, followed by Partners Group and CDC Group.
This marks Ecom Express’ second attempt at going public. In February 2022, the 13-year-old firm had approved a fundraise of up to ₹4,860 crore through a public issue of shares but later put the plan on hold.
In the meantime, Ecom Express is raising ₹1,424 crore (approximately $172 million) from existing investors via a rights issue. Since its inception, the company has secured over $250 million through equity and debt financing.
It employs over 50,000 people and operates more than 3,000 facility centers nationwide.
For the fiscal year ending March 2023, Ecom Express reported a 21.9% increase in revenue from operations, reaching ₹2,548 crore, up from ₹2,090 crore in FY22. However, the company’s losses surged fourfold to ₹375 crore in FY23 from ₹91 crore in the previous fiscal year. The company has not yet released its FY24 financials.
Ecom Express is set to become the second Indian startup from the logistics sector to be listed on the stock exchange, following its competitor Delhivery, which went public in May 2022. Flipkart-backed Shadowfax is also planning to raise up to ₹3,000 crore through a public listing.