Shiprocket IPO could offer over 30% listing pop; check post-debut strategy

Shiprocket IPO listing: Shiprocket shares are set to list on the Indian stock market on Wednesday, August 19, following a stellar response to its initial public offering (IPO) during the three-day bidding process. 

 

The offer was booked a whopping 99.38 times and is expected to list at over a 30 per cent premium, according to the grey market trend. Ahead of its debut, Shiprocket IPO's grey market premium (GMP) was ₹33 apiece, suggesting a listing price of ₹130 —  an upside of 34 per cent over its issue price of ₹97.

 

Shiprocket IPO received bids for 93.85 billion shares as against 94.43 million shares on offer. The qualified institutional buyer (QIB) quota was subscribed the most at 122.80 times, followed by the non-institutional investor (NII) segment with 88.99 times bids. The retail portion garnered 46.42 times bids, while the employee quota was booked 55.51 times. 

 

The offer was available for bidding from August 12 to August 14. Investors could apply in the price band of ₹92 to ₹97 apiece and in lots of 154 shares. 

 

The ₹1,617-crore Shiprocket IPO was a combination of a fresh issue of ₹885.50 crore and an offer for sale of ₹731.98 crore. The funds raised via fresh share sale will be used for investments in business verticals, repayment of debt, funding inorganic growth through unidentified acquisitions, and general corporate purposes.  Also Read | NSE seeking valuation of as much as ₹5.26 trillion in planned IPO

 

Shiprocket is a high-growth, loss-making but steadily improving commerce enablement platform, supported by a large merchant base and multiple avenues for monetisation.

 

Over the FY24-FY26 period, the company recorded revenue CAGR of 24 per cent and narrowed its adjusted loss from Rs 351 crore in FY24 to Rs 76 crore in FY26. Going ahead, the company plans to utilise part of its fresh issue proceeds towards debt repayment of ~Rs 210 crore, which shall aid in significant deleveraging of its balance sheet and improvement in profitability, believe analysts

 

Mahesh M. Ojha, vice president research & business development at Kantilal Chhaganlal Securities, said that since the company is loss-making, conventional P/E-based valuation metrics are inapplicable. 

 

Based on FY26 financials, he values Shiprocket at around 2.7x Price/Sales and 3.3x EV/Sales, which appears relatively reasonable when compared with listed logistics-tech peers such as Delhivery, which trades at approximately 4.0–4.5x EV/Sales.

 

Shiprocket IPO: Post-listing strategy

Ojha said that Shiprocket's valuation offers reasonable comfort given its strong revenue growth, expanding ecosystem and improving loss profile. However, he believes the key monitorables remain the pace of revenue growth, successful scaling of newer businesses, improvement in unit economics and the trajectory toward sustainable profitability.

 

He advised existing allottees to consider booking partial listing gains and retaining the balance position to participate in the company’s potential long-term growth, while closely tracking margin improvement and upcoming financial results. 

 

Fresh investors may adopt a wait-and-watch approach and consider evaluating the stock after the next 1–2 quarterly results, once greater visibility emerges on revenue growth, operating leverage and the path to profitability, he further added.

 

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