August 16, 2024
New Delhi, India
IPO Watch
Ecom Express Ltd, a leading logistics service provider specializing in e-commerce, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO aims to raise ₹2,600 crore, comprising a fresh issue of ₹1,284.5 crore and an offer for sale (OFS) of ₹1,315.5 crore by the company’s promoters and existing shareholders.
IPO Details:
- Fresh Issue: The IPO includes a fresh issue of equity shares worth ₹1,284.5 crore.
- Offer for Sale: The OFS component will see promoters and existing shareholders selling equity shares worth ₹1,315.5 crore.
- Total Issue Size: The total issue size is ₹2,600 crore..
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Promoters and Shareholders: The key promoters and shareholders participating in the OFS include Kotla Satyanarayana, Manju Dhawan, Kotla Sridevi, Kotla Rathnanjali, Eaglebay Investment Ltd, and PG Esmeralda Pte Ltd. As of August 15, 2024, the promoters collectively own 63.44% of Ecom Express’s equity share capital and 99.18% of its preference share capital.
- Major Stakeholders:
- PG Esmeralda Pte Ltd: Holds a 49.76% stake in Ecom Express.
- Eaglebay Investment Ltd: Owns 27.13% of the company’s equity.
- British International Investment plc: Holds a 10.03% stake.
Company Background: Ecom Express Ltd is recognized as the sole pure-play supplier of B2C e-commerce logistics solutions in India, according to a RedSeer report. The company offers comprehensive logistics services, including reverse logistics, warehousing, first-mile pickup, mid-mile transportation, and last-mile delivery across India.
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Since its inception in 2013, Ecom Express has developed innovative logistical solutions tailored to various e-commerce categories. This strategic approach has enabled the company to handle over 2 billion shipments, with a compound annual growth rate (CAGR) of 33.46% in annual shipments between FY 2020 and FY 2024.
- Clientele: Ecom Express serves prominent e-commerce giants like Meesho, Amazon, Nykaa, Puma, Purplle, E-Kart, and V Mart. As of March 31, 2024, the company had 6,384 active clients.
Market Position and Industry Peers: According to the RedSeer report, Ecom Express holds the largest coverage of PIN codes among competitors in Tier 2+ areas as of March 31, 2024. The company’s listed peers include Blue Dart Express Ltd, with a P/E ratio of 64.45, and Delhivery Ltd.
IPO Managers: The book running lead managers for the IPO are Axis Capital Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and UBS Securities India Private Ltd.
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