Ecom Express Ltd has taken a significant step towards going public by filing its draft red herring prospectus (DRHP) with SEBI, the capital market regulator, for an initial public offering (IPO).
Market Position and Services
As of the Financial Year 2024, Ecom Express is the only pure-play provider of B2C e-commerce logistics solutions in India, according to a RedSeer report. It operates a comprehensive express logistics network across India, offering services such as returns management, warehousing, pickup, transportation, and delivery.
Details of the IPO
The IPO includes newly issued equity shares worth up to ₹1,284.5 crore and an offer for sale (OFS) by promoter selling shareholders amounting to ₹1,315.5 crore, totaling an issue size of ₹2,600 crore. Prominent names in the OFS are Kotla Satyanarayana, Manju Dhawan, Kotla Sridevi, Kotla Rathnanjali, Eaglebay Investment Ltd, and PG Esmeralda Pte Ltd.
Promoters and Shareholding
By the DRHP date on August 15, 2024, the promoters owned over 32.87 million equity shares, equivalent to 63.44% of the company’s total share capital, and over 10.53 million preference shares, which make up 99.18% of the preference share capital. Eaglebay Investment Ltd holds a 27.13% stake and is managed by Warburg Pincus LLC, a New York-based private equity firm. British International Investment plc holds a 10.03% stake, and PG Esmeralda Pte. Ltd, a promoter, has a 49.76% stake.
Management of the IPO
Axis Capital Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and UBS Securities India Private Ltd will manage the IPO.
Company Growth and Clients
Since its establishment in 2013, Ecom Express has managed over 2 billion shipments. It has tailored its logistics solutions to meet the evolving needs of the e-commerce sector, achieving a compound annual growth rate of 33.46% in shipments between the Financial Years 2020 and 2024. The company’s clients include Meesho, Amazon, Nykaa, among others, with 6,384 active clients as of March 31, 2024.
Coverage and Competitors
According to RedSeer, Ecom Express has the widest coverage of PIN codes in Tier 2+ areas among its competitors. Its listed peers include Blue Dart Express Ltd and Delhivery Ltd.
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