Ecom Express' Board Greenlights INR 2,600 Cr IPO Plans

Ecom Express Eyes IPO, Gets Board Approval For INR 2,600 Cr Public Issue

SUMMARY

The proposed IPO will comprise a fresh issue of shares worth up to INR 1,284.5 Cr and an offer for sale worth up to INR 1,315.5 Cr

Ecom Express plans to raise INR 256.9 Cr via pre-IPO placement before filing the draft red herring prospectus

The logistics startup is also in talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise a funding of about INR 350-400 Cr at a unicorn valuation

Logistics startup Ecom Express is inching towards its initial public offering (IPO), with its board approving the startup’s public listing plans during an extraordinary general meeting (EGM) on August 13.

According to its filings with the Registrar of Companies (RoC), Ecom Express intends to float an INR 2,600 Cr IPO. The proposed IPO will comprise a fresh issue of shares worth up to INR 1,284.5 Cr and an offer for sale worth up to INR 1,315.5 Cr.

It plans to list its shares on the BSE and the NSE.

The documents also revealed that the startup plans to raise INR 256.9 Cr via pre-IPO placement before filing the draft red herring prospectus (DRHP). However, the timeline for the IPO is yet to be finalised. The startup said it will look at listing at an opportune time in consultation with the book running lead managers and other advisors.

The development was first reported by Entrackr.

This is the company’s second stab at a public listing. In February 2022, the logistics startup finalised on an INR 4,860 Cr IPO. However, it shelved those plans later that year on account of bearish market sentiments.

The latest development comes at a time when Ecom Express is in talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise a funding of about INR 350-400 Cr at a unicorn valuation.

Founded in 2012 by the late TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express claims to have 3,000 delivery centres spanning 9.6 Mn sq. ft. of space. The logistics startup delivers packages to 27,000 pin codes in 2,700 cities and towns across the country.

In its financial year 2022-23 (FY23), the startup’s net loss surged over 9X to INR 472.45 Cr from INR 46.33 Cr in the previous year. It also incurred an exceptional loss of INR 112.6 Cr in FY23 due to impairment loss on fair valuation of investment in Paperfly Pvt Ltd, a partly owned subsidiary operating in Bangladesh.

Meanwhile, its operating revenue rose 21% to INR 2,581.84 Cr from INR 2,124.33 Cr in FY22.