IPO Details
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Schedule of Ecom Express Ltd IPO
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About Ecom Express Limited IPO
Ecom Express Limited IPO is an IPO aggregating up to ₹2600 crores. It consists of an offer for sale aggregating up to ₹1,315.50 crores and a fresh issue aggregating up to ₹1,284.50 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Ecom Express Limited IPO
- Capital expenditure towards set-up of new processing centres with automation and new fulfilment centres.
- Investment in computers and information technology (IT) equipment.
- Investing in enhancement of technological and data science capabilities including cloud infrastructure.
- Repayment or prepayment, in full or in part, of certain borrowings availed of by the company including payment of the interest accrued thereon.
- Unidentified inorganic acquisitions and general corporate purposes.
Ecom Express Limited IPO Valuation
Upper Price Band (₹)
Existing Shares to be Sold
EPS (₹) For the year ended March 31, 2024
| Detail | mobile_header | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹1315.50 crores |
Fresh Issue | Aggregating up to ₹1284.50 crores |
EPS (₹) For the year ended March 31, 2024 | (28.85) |
Ecom Express Limited IPO Share offer and Subscription Details
QIBs Share Offered | Not less than 75% of the Issue |
Non-Institutional Bidders (NIBs) | Not more than 15% of the Issue |
Retail Individual Bidders | Not more than 10% of the Issue |
Industry Outlook
The B2C e-commerce market in India has strong long-term growth prospects and is expected to grow at a CAGR of 21% over the next five years from ₹5,100 billion in gross merchandise value (“GMV”) for the Financial Year 2024 to ₹12,500–₹13,500 billion by the Financial Year 2029 (Source: RedSeer Report).
Company Information
Ecom Express Limited operate a pan-India express logistics network covering first-mile pick-up, mid-mile transportation and last-mile delivery as well as reverse logistics (i.e., returns) and fulfilment services (i.e., warehousing). By providing essential logistics infrastructure and leveraging technology capabilities, they connect digital retailers
and e-commerce platforms to their end-consumers across the country.
Strengths of Ecom Express Limited IPO
India’s only pure-play B2C e-commerce logistics solution provider, with widest pan-India reach, well positioned to benefit from the rapid growth of e-commerce in India
The company’s pan-India reach covers over 27,000 PIN codes and they had the widest coverage amongst their peers as of March 31, 2024 (Source: RedSeer Report). With a network of 317 large facilities (covering sorting hubs, processing centres, return centres and fulfilment centres), and 3,421 delivery centres, in each case as of March 31, 2024, the PIN codes they cover collectively account for approximately 97% of India’s population (Source: RedSeer Report). They had the second-largest market share among their peers and handled over 27% of all 3PL B2C e-commerce shipments in India in the Financial Year 2024 (Source: RedSeer Report).
Deep penetration in high-growth tier-2 regions of India, which is difficult to replicate
They have the highest coverage compared to their peers in tier 2+ regions in terms of PIN codes covered as of March 31, 2024 (Source: RedSeer Report). Their wide coverage allows them to provide their customers access to consumers in new markets. Backed by their technology architecture and network, they move e-commerce shipments across India with a special focus on tier 2+ regions.
In the Financial Year 2024, they picked-up shipments from over 580,000 unique touchpoints across India of which 86.23% were in Tier-2+ regions. In 48.34% of tier 2+ lanes that they serviced, they have seen shipments increase by over 100% over the last three financial years.
Proprietary and advanced technology architecture, aimed at ensuring faster delivery, better customer experience and low costs.
In designing their network, they employ various predictive machine learning models to determine the best location for sorting hubs, processing and return centres, fulfilment centres and delivery centres, based on the locations where higher volumes of shipments are expected. These technology investments for data-driven network and location planning have enhanced their operational efficiency and cost-effectiveness and have led to a 37.48% reduction in network cost per shipment from the Financial Year 2022 to the Financial Year 2024 (network costs being freight and transportation costs for line haul paid to third-party service providers primarily for mid-mile transportation i.e., from one hub to another and from hubs to delivery centres).
Risks of Ecom Express Limited IPO
- The company’s business and growth are highly dependent on the growth of the e-commerce industry in India and any uncertainties relating to the growth, profitability and regulatory regime of the e-commerce industry in India could have a significant impact on them.
- The company has incurred losses and negative cash flows in the past and may continue to experience losses and negative cash flows in the future.
- They rely on third parties such as employees on contract, gig-workers, transportation service providers, technology vendors and equipment suppliers for various aspects of their business operations, which poses additional risks.
Ecom Express Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Ecom Express Limited | Blue Dart Express Limited | Delhivery Limited |
|---|---|---|---|
Total Income (₹ in crores) | 2652.891 | 5318.670 | 8594.234 |
P/E | - | 64.45 | - |
EPS (Basic) | 28.85 | 126.86 | 3.40 |
Return on Net Worth for equity shareholders (%) | 67.37 | 23.64 | 2.72 |
NAV per share | 30.37 | 576.18 | 124.11 |
Anchor Investor Information
The Anchor Investor Bid/ Offer Period shall be one Working Day prior to the Bid/ Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Axis Capital Limited
IIFL Securities Limited
Kotak Mahindra Capital Company Limited
UBS Securities India Private Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
- B2C Express Logistics: They provide comprehensive B2C express logistics solutions tailored to meet the needs of both fast-growing and established e-commerce companies.
- Time-Definite Deliveries (i.e., Same-Day Deliveries): They commenced same-day deliveries to meet the increasing demand for rapid order fulfilment in the e-commerce sector, ensuring swift delivery of time-critical items.
- Reverse Logistics: They provide reverse logistics solutions, facilitating the efficient management of product returns from customers to origin points.
- Heavy B2C Express Shipments: They handle and transport heavy and bulky B2C e-commerce shipments, catering to customers and businesses requiring shipment of large or heavy items.
- Fulfilment Solutions (Warehousing): They provide comprehensive fulfilment services and assist with storing, managing, and distributing inventory for e-commerce companies.
- Quick Commerce: They provide warehousing solutions and dark store offerings tailored for quick commerce customers.
- Modular Solutions: They also cater to e-commerce companies which only require assistance with specific aspects of their logistics operations. They provide flexible and scalable services that adapt to varying client requirements in unbundled supply chain solutions in first mile, line-haul or last mile only modules.
Company Growth Trajectory
Ecom Express Limited Company has evolved their business and operations over time, taking into account changes in the e-commerce market by developing logistics solutions for e-commerce categories. This has enabled them to handle over 2 billion shipments since their incorporation in 2013 and further, their annual shipments handled have grown at a CAGR of 33.46% between the Financial Year 2020 and the Financial Year 2024. They have actively focused on building capabilities to service different needs that their customers have felt in their growth journeys. For example, a significant number of their customers require their logistics providers to handle cash-on-delivery (COD) transactions with their consumers. They have been able to address this requirement, and 78.96%, 80.50% and 79.53% of their shipments for the Financial Year 2024, 2023, and 2022, respectively, were on a COD basis.
Their asset-light business model helps them optimize margins despite changes in market trends by remaining capital efficient. This has allowed them to bring down their cost per shipment over time. Their operating cost per shipment reduced to ₹39.65 for the Financial Year 2024 from ₹45.40 for the Financial Year 2023 and ₹47.33 for the Financial Year 2022, representing a decline of 16.23%.
Company Market Position
Ecom Express Limited Company is India’s only pure-play B2C e-commerce logistics solutions provider as of the Financial Year 2024 (Source: RedSeer Report). They had the second-largest market share among their peers in terms of B2C e-commerce shipments and handled over 27% of all B2C e-commerce shipments through third-party logistics providers (3PLs) in India in the Financial Year 2024 (Source: RedSeer Report).
Ecom Express Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Total Income (₹ crores) | 2120.897 | 2575.526 | 2652.891 |
Loss before tax from continuing operations (₹ crores) | -61.072 | -327.305 | -268.661 |
Net profit / (loss) (₹ crores) | -91.394 | -428.135 | -255.875 |
Ecom Express Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Loss before tax from discontinued operations (₹crores) | -61.072 | -327.305 | -268.661 |
Net Cash from Operating Activities (₹ crores) | -63.514 | -49.585 | 313.322 |
Net Cash from Investing Activities (₹ crores) | -59.204 | -1834.83 | -48.226 |
Net Cash from Financing Activities (₹ crores) | 277.486 | 280.185 | 236.53 |
Cash and Cash Equivalents (₹ crores) | 304.63 | 317.737 | 2,77.588 |
How To Check Allotment Status of Ecom Express Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Ecom Express Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Ecom Express Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How to Apply for Ecom Express IPO?
To apply for Ecom Express IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Ecom Express Ltd IPO FAQs
What is the Ecom Express Limited IPO?
The Ecom Express Limited IPO has an issue size aggregating up to ₹2,600 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Ecom Express Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about Ecom Express Limited business?
You may read more about Ecom Express Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | Ecom Express Limited - DRHP)
