Ecom Express IPO: Logistics firm eyes raising ₹2,600 crore, files draft papers; check details

Ecom Express Ltd has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹2,600 crore via an initial public offering. The fundraise would be aimed at enhancing the company’s operational capacities.

The company could also raise ₹257 crore ahead of the IPO, through a pre-issue placement round. In such a scenario, the offer size would be reduced as the amount raised in the pre-IPO round would be subtracted from the fresh issue size.

Axis Capital Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd and UBS Securities India Private Ltd are the book running lead managers to the company's public issue.

Ecom Express IPO size

The company's initial share sale comprises a fresh issue of equity shares worth ₹1,284.50 crore and an offer-for-sale (OFS) of shares valued ₹1,315.5 crore by promoters and other shareholders, according to the draft red herring prospectus (DRHP).

How the IPO proceeds will be used

Proceeds from the fresh capital to the tune of ₹387.44 crore will be used for setting up new processing centres with automation and new fulfilment centres, ₹73.71 crore for computers and IT equipment, ₹239.23 crore for enhancing technology, data science capabilities, and cloud infrastructure, and ₹87.92 crore for payment of debt.

Also, the remaining funds will be used for general corporate purposes and potential acquisitions, according to the draft papers filed on Wednesday.

About Ecom Express

Ecom Express operates a pan-India express logistics network that handles first-mile pick-up, mid-mile transportation, last-mile delivery, returns, and warehousing services. By offering essential logistics infrastructure and using technology, the company connect digital retailers and e-commerce platforms with consumers across the country.

According to RedSeer report, the Indian e-commerce market is projected to grow significantly, with a compound annual growth rate (CAGR) of 21% over the next five years. It is expected to increase from ₹5.1 lakh crore in 2024 to ₹12.5-13.5 lakh crore by 2029.

Growth is notably strong in Tier 2+ regions, which are expected to account for 70-80% of B2C e-commerce shipments by 2029, up from 62% in 2024, the report added.