Ecom Express Ltd has submitted draft documents to the Securities and Exchange Board of India (SEBI) with the aim of raising Rs 2,600 crore through an initial public offering (IPO). The IPO will consist of a fresh issuance of equity shares amounting to Rs 1,284.50 crore, along with an offer for sale (OFS) of shares valued at Rs 1,315.50 crore by the company’s promoters and other shareholders, as outlined in the draft red herring prospectus (DRHP).
The funds raised from the fresh issue, totaling Rs 387.44 crore, are intended for the establishment of new processing centers with automation and the development of new fulfillment centers. An additional Rs 73.71 crore will be allocated for computers and IT equipment, Rs 239.23 crore for enhancing technology, data science capabilities, and cloud infrastructure, and Rs 87.92 crore for debt repayment.
The remaining proceeds will be used for general corporate purposes and potential acquisitions, as detailed in the draft documents filed recently. The company is also considering a pre-IPO placement to raise Rs 257 crore. Should this placement occur, the amount raised will be deducted from the total size of the fresh issue.
Ecom Express operates a nationwide express logistics network, offering services such as first-mile pick-up, mid-mile transportation, last-mile delivery, returns, and warehousing. The company connects digital retailers and ecommerce platforms with consumers across India by providing essential logistics infrastructure and leveraging technology.
Several financial institutions, including Axis Capital, IIFL Securities, Kotak Mahindra Capital Company, and UBS Securities India, have been appointed as the book-running lead managers for the public offering.
