Ecom Express Ltd has submitted preliminary documents with the capital markets regulator Sebi to raise ₹2,600 crores through an initial public offering (IPO).
The IPO consists of a fresh issue of equity shares worth ₹1,284.50 crores and an Offer for Sale (OFS) of shares valued at ₹1,315.50 crores by promoters and other shareholders, as per the draft red herring prospectus (DRHP).
The funds generated from the fresh capital amounting to ₹387.44 crores will be utilized for establishing new processing centres with automation and new fulfilment centres, ₹73.71 crores for computers and IT equipment, ₹239.23 crores for enhancing technology, data science capabilities, and cloud infrastructure, and ₹87.92 crores for debt repayment.
Additionally, the remaining funds will be allocated for general corporate purposes and potential acquisitions, as stated in the draft papers filed on Wednesday.
The company is considering raising ₹257 crore through a pre-IPO placement. Should such placement occur, the amount raised will be subtracted from the total fresh issue size.
Ecom Express operates a nationwide express logistics network that manages first-mile pick-up, mid-mile transportation, last-mile delivery, returns, and warehousing services. Through essential logistics infrastructure and technology, the company connects digital retailers and e-commerce platforms with consumers throughout the country.
According to a RedSeer report, the Indian e-commerce market is anticipated to witness significant growth, with a compound annual growth rate (CAGR) of 21 per cent over the next five years. It is projected to surge from ₹5.1 lakh crore in 2024 to ₹12.5-13.5 lakh crore by 2029.
The growth is particularly robust in Tier 2+ regions, which are predicted to make up 70-80 per cent of B2C e-commerce shipments by 2029, an increase from 62 per cent in 2024, the report highlighted.
Axis Capital Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and UBS Securities India Private Ltd are serving as the book-running lead managers for the company's public issue.
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