DBT Bureau
Bengaluru, 16 August 2024
New age logistics firm, Ecom Express has filed draft papers with the market regulator, SEBI for an initial public issue of shares worth around Rs 2,600 crore.
While the offer will comprise fresh shares worth Rs 1,284 crore; another Rs 1,315 crore will be in an offer for sale (OFS) by existing investors, the company informed the Securities and Exchange Board of India in its draft red herring prospectus (DRHP).
If Ecom Express gets the regulatory approval for the IPO, it will become the second new-age logistics firm focused on online deliveries to be listed on the Indian markets after Delhivery, which listed in May 2022.
Many private equity funds are planning to exit their stakes in the company during this IPO. Warburg Pincus, through Eaglebay Investment Ltd, has proposed to sell shares worth Rs 211 crore, while Singapore’s PG Esmeralda Ltd plans to sell Rs 931 crore worth of its stake. UK government-backed British International Investment is planning to sell shares worth Rs 136 crore.
Current promoters will also sell their holding partially in the company during the IPO.
“Some of the key areas we are looking to enhance include our capabilities for route optimisation for mid-mile and last-mile delivery, maximising truck utilisation, managing and reducing returns,” the firm said in the draft IPO papers regarding utilisation of funds raised through the IPO.
The company will use Rs 387 crore from the net proceeds from the sale of fresh shares to set up new processing centres with automation, as well as new fulfilment centres across the country, according to the DRHP. It currently operates 32 fulfilment centres and 33 advanced and automated sortation systems, the company mentioned in the document.
