Ecom Express, based in Haryana, has submitted draft papers to capital market regulator SEBI for its upcoming initial public offering (IPO). This IPO contains both a fresh issue and an offer-for-sale. An OFS contains Rs 1,315.50 crore in shares from existing shareholders, whereas a fresh issue contains equity shares worth Rs 1,284.50 crore. Each has a face value of ₹1, as per DRHP.
The book-running lead managers of this IPO are UBS Securities India Private Limited, Kotak Mahindra Capital Company Limited, IIFL Securities Limited, and Axis Capital Limited. Link Intime India Private Limited is the registrar for this offering.
The proceeds from this IPO will be used for general corporate purposes and unidentified inorganic sales, to invest in computers and IT equipment, to repay or prepay loans, to develop data science and technology skills, including cloud infrastructure, and to open new processing and fulfillment centers. The company is planning to raise Rs 257 crore via a pre-IPO placement. If such a placement is made, the funds raised will be deducted from the total fresh issue size.
Ecom Express Limited is India’s only pure-play B2C e-commerce logistics solutions provider that operates a pan-India express logistics network covering first-mile pick-up, mid-mile transportation, last-mile delivery, reverse logistics, and fulfillment services. With the widest coverage in India and Tier 2+ regions, they cover over 27,000 PIN codes.
The company has the second-largest market share among its peers and handles over 27% of all B2C e-commerce shipments through third-party logistics providers. Since its incorporation in 2013, the company has handled over 2 billion shipments and has grown at a CAGR of 33.46% between 2020 and 2024.
In 2023-24, the company’s total income increased to ₹2,652.89 crore from ₹2,575.52 crore in FY23 and ₹2,120.89 crore in FY22, indicating continued growth. The loss for the year was ₹255.87 crore, down from ₹428.13 crore in the previous year, but still higher than the ₹91.39 crore loss in FY22.
Ecom Express IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Ecom Express Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹2120.89 | ₹2181.97 | ₹91.39 |
| 2023 | ₹2575.53 | ₹2902.83 | ₹428.14 |
| 2024 | ₹2652.89 | ₹2921.55 | ₹255.88 |
Ecom Express IPO Valuation – FY2024
Ecom Express IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | –₹28.85 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | –67.37% |
| Net Asset Value (NAV): | –₹30.37 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Blue Dart Express Limited | NA | 64.45 | 23.64 | 576.18 | 5318.67 Cr. |
| Delhivery Limited | NA | NA | 2.72 | 124.11 | 8594.23 Cr. |
Objects of the Issue
- Capital expenditure towards set-up of new processing centers with automation and new fulfilment centres
- Investment in computers and information technology equipment
- Investing in enhancement of technological and data science capabilities including cloud infrastructure
- Repayment/ prepayment, in full or in part, of certain borrowings availed of by our Company including payment of the interest accrued thereon
- General corporate purposes and unidentified inorganic acquisitions
IPO Lead Managers aka Merchant Bankers
- Axis Capital Limited
- IIFL Securities Limited
- Kotak Mahindra Capital Company Limited
- UBS Securities India Private Limited
