Logistics firm Ecom Express set to float Rs 4,860 Cr IPO

Another startup joins the IPO bandwagon. Logistics and warehousing firm Ecom Express is all set to float its initial public offering as the Delhi-based firm’s board has approved a fundraise of up to Rs 4,860 crore or $648 million through a public issue of shares. 

According to the company’s regulatory filings, the board has approved to raise up to Rs 4,860 crore via an IPO which will include a fresh issue of Rs 2,160 crore and an offer for sale of Rs 2,700 crore from Ecom Express’ existing investors. 

The T. A. Krishnan-led company had recently turned its holding company into a public entity.

The filings further show that the company has approved the appointment of Krishnan as CEO and executive director for the next five years with a salary of Rs 3.65 crore at a cap of Rs 6 crore. Further, the company has also passed resolutions to appoint Vageesh Gupta and Manas Tandon as non-executive directors as nominees of Partners Group Ag, which had acquired a stake in the company in January 2021.

With this move, Ecom Express becomes the second company from the logistics segment that is close to filing its draft red herring prospectus or DRHP with Sebi. In November 2021, India’s largest supply chain company Delhivery had filed its DRHP with the market watchdog for its Rs 7,460 crore IPO. 

As per media reports, Delhivery also received a Sebi nod to go-ahead for its public listing. However, the SoftBank-backed company may delay its IPO in the wake of sliding prices of internet companies including Paytm, Zomato and CarTrade.

Launched in 2012, Ecom Express claims to provide logistics services in over 2,650 towns and 27,000 pin codes in India. It employs over 36,000 people and has more than 2,930 facility centres.

According to Ecom Express’s annual financial statement for FY20, it had recorded a turnover of Rs 1,254 crore. During the period, its losses were recorded at Rs 313.52 crore. The company, however, claimed that it was profitable at (Profit after tax) PAT level for the fiscal year. It is yet to file its annual financial statements for FY21.

The company is backed by the likes of CDC Group, Partner Group and Warburg Pincus.