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19 Nov 2024
Mumbai: Warburg Pincus-backed Ecom Express is preparing for a ₹3,000-crore initial public offering (IPO), as per two sources familiar with the matter. The third-party logistics company has enlisted Kotak Capital, IIFL, Axis Capital, and UBS to manage the IPO.
The public issue will include both a fresh issue and an offer for sale from existing investors, with the draft red herring prospectus expected to be filed soon.
Warburg Pincus holds a 33.76% stake in Ecom Express, while Partners Group and British International Investment own 17.57% and 6.48%, respectively.
Ecom Express, which competes with Delhivery, XpressBees, Flipkart's Ekart Logistics, and Amazon Transportation Services, postponed its planned public listing in 2022 due to unfavorable market conditions.
Several startups, including Paytm, Nykaa, Zomato, Nazara Technologies, CarTrade, and EaseMyTrip, launched IPOs in 2020 and 2021. However, due to poor post-listing performances, only a few, like Delhivery and Tracxn, successfully raised funds through public issues in 2022, while others delayed their plans.
Delhivery, listed in May 2022, is currently trading at ₹400, down 20% from its IPO price of ₹487.
Ecom Express saw a 20% revenue increase to ₹2,548 crore in FY23 but reported a loss of ₹375 crore, up from a loss of ₹91 crore in FY22. The company's expenses rose 30% to ₹2,856 crore in FY23.
Additionally, Ecom Express aims to raise ₹1,424 crore through a rights issue, led by existing investors like Warburg Pincus, British International Investment, and Partners Group.
The rights issue involves 1.57 million compulsorily convertible preference shares priced at ₹9,071 each, matching the price of a previous rights issue in July last year.
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