Ecom Express Files Draft Papers For IPO With SEBI

Ecom Express has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering to raise up to Rs 2,600.5 crore. The IPO consists of a fresh issue of equity shares worth Rs 1,284.5 crore and an offer for sale worth Rs 1,316 crore, to be issued by the shareholders at a face value of Re 1 apiece, according to the draft red herring prospectus.

The shareholders selling their shares include Eaglebay Investment Ltd., British International Investment Plc and PG Esmeralda Pte. The transaction will be managed by Axis Capital, IIFL Securities, Kotak Mahindra Capital and UBS.

The funds raised will be utilised to set up new processing centres with automation capabilities and the creation of additional fulfillment centres. The funds will also be invested in computers and information technology equipment along with enhancing technological and data science capabilities. This includes cloud infrastructure and the repayment or prepayment, in whole or in part, of certain borrowings obtained by the company.

This is the company’s second attempt at public listing. In February 2022, the Gurugram-based company finalised on an Rs 4,860-crore IPO. But due to weak market sentiments, it shelved the plan.

Ecom Express was founded in 2012 by TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena.

It is a provider of end-to-end, technology-enabled logistics solutions for the Indian retail and e-commerce sectors. It comprises 3,000 delivery centres spanning 9.6 million square feet of space in addition to delivering packages in 2,700 cities across the country.