Logistics firm Shiprocket confidentially files draft papers for IPO

Shiprocket's IPO will include a fresh issue and offer for sale; proceeds to fund tech upgrades, acquisitions, and expansion of logistics and warehousing capacity

Temasek-backed logistics firm Shiprocket has filed papers with the stock markets regulator to raise around ₹2,000 crore-2,500 crore through initial public offering (IPO), which the firm intends to use in product development and strategic acquisitions.

 

The e-commerce enablement firm has confidentially pre-filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi), according to an advertisement published in a financial daily on Wednesday.

 

The offer will comprise a mix of a fresh issue and an offer for sale (OFS) by existing investors.

 

The public announcement is pursuant to Regulation 59C (5) of the SEBI ICDR Regulations, the newspaper advertisement read.

 

Shiprocket has on-boarded Axis Capital Ltd, BofA Securities, JM Financial, and Kotak Mahindra Capital Company Ltd. as merchant bankers. 

 

The funds raised from the fresh issue, if included, are likely to be allocated toward product development, strategic acquisitions, expanding logistics and warehousing infrastructure, and enhancing the company’s technology stack, a source privy to the matter shared.

 

In an earlier interaction with the Business Standard, Saahil Goel, managing director and chief executive officer of Shiprocket, shared that the company will ramp up acquisitions this calendar year, while identifying the four big pillars of acquisition strategy as business in fulfilment and shipping, finance, payments, and marketing. 

 

“We have been acquisitive in the past. We have been profitable for this financial year, and we will end the year the same way, which means we have the capability to use cash to drive acceleration. If you ask me if we will ramp up this year, the answer is yes,” Goel said.

 

According to the data shared by Shiprocket, the company is growing at an annual rate of approximately 30 per cent.

 

Shiprocket currently has over four lakh merchants and covers 19,000 pin codes across India, and it is reaching more than 160 countries via its cross-border capabilities, the company said.