A draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise Rs 2,600 crore has been filed by Ecom Express Ltd. with the Securities and Exchange Board of India (SEBI). Enhancing the company's operational capabilities would be the goal of the fundraising effort.
Offer size
According to the draft red herring prospectus (DRHP), the company's first share sale will consist of an offer-for-sale (OFS) of shares valued at Rs 1,315.5 crore by promoters and other shareholders, as well as a new issue of equity shares valued at Rs 1,284.50 crore.
Purpose of the raised capital
A total of Rs 387.44 crore from the new capital will be used to finance the establishment of new automation-enabled processing centres and fulfilment centres, Rs 73.71 crore for computers and IT equipment, Rs 239.23 crore for the advancement of technology, data science capabilities, and cloud infrastructure, and Rs 87.92 crore for debt repayment.
The draft papers also state that the remaining funds will be utilised for prospective acquisitions and general corporate purposes.
Pre-IPO placement
Through a pre-issue placement round, the company could also raise Rs 257 crore prior to the IPO. In such a scenario, the amount raised in the pre-IPO round would be deducted from the fresh issue size, lowering the offer size.
For the company's public offering, the book-running lead managers are Axis Capital Ltd., IIFL Securities Ltd., Kotak Mahindra Capital Company Ltd., and UBS Securities India Private Ltd.
Business profile
Ecom Express manages a pan-Indian express logistics network that includes services for returns, warehousing, mid-mile transportation, last-mile delivery, and first-mile pickup.
The company connects digital retailers and e-commerce platforms with consumers nationwide by providing essential logistics infrastructure and leveraging technology.
