Delhivery to acquire majority stake in Ecom Express for ₹1,407 crore

Logistics service provider Delhivery announced that its board of directors approved the acquisition of Ecom Express Limited for a cash consideration of ₹1,407 crore in a meeting held on Saturday, April 5.

Delhivery will become a majority stakeholder by acquiring 99.4% of Ecom Express’s paid-up share capital of ₹427.33 crore, on a fully diluted basis.

Ecom Express Ltd, a logistics solution provider, has a total authorised share capital of ₹2,400 crore.

“Logistics is a scale-driven business where economies of scale lead to higher efficiencies, enabling players to provide higher-quality services at more competitive prices. This acquisition aims to enhance Delhivery's scale, thereby strengthening its value proposition to clients,” the regulatory filing stated.

The increased scale from the acquisition will allow Delhivery to invest more effectively in improving service quality through network expansion, technology investment, research and development, it added.

This acquisition is also expected to foster growth within the vendor ecosystem in the country. Vendors, such as those providing fleet and automation solutions, may gain the confidence to invest in assets and R&D, ultimately benefiting the overall logistics industry in India, the regulatory filing said.

The completion of the transaction is subject to approval from the Competition Commission of India, and customary closing conditions, the filing stated.

Shares of Delhivery closed in the red at ₹258.80 apiece, down 1.80% on the National Stock Exchange (NSE) on Friday, April 4.