Ecom Express seeks $310 million through an IPO, including new shares and existing stake sales, aiming to expand and reduce debt.
Ecom Express, a major player in India’s logistics sector, has filed for an initial public offering (IPO) valued at up to ₹26 billion ($310 million). The draft papers reveal that the IPO will feature a fresh issue of shares worth up to ₹12.85 billion, alongside an offer for sale by existing investors amounting to ₹13.16 billion.
The firm, which serves high-profile clients such as Amazon and Nykaa, plans to use the proceeds from the IPO to establish new processing and fulfilment centres, invest in IT infrastructure, and reduce existing debt. This move comes as India’s IPO market remains robust, with over 150 companies raising approximately $5 billion as of July 2024.
Ecom Express, competing with industry leaders like Delhivery and Blue Dart, has reported a net loss of ₹2.54 billion for the fiscal year ending March 31, 2024, an improvement from the previous year’s loss of ₹4.22 billion.
Notable stakeholders, including Partners Group’s PG Esmeralda and Warburg Pincus’s Eaglebay Investment, will sell shares worth ₹9.31 billion and ₹2.11 billion, respectively. The company’s IPO aims to strengthen its market position and capitalise on the growing e-commerce sector in India.
