SpiceJet targets cargo unit IPO within 12 months amid e-commerce boom

The no-frills carrier is expanding its nascent cargo-hauling arm to fill the growing need for overnight shipping services, fueled by online retailers such as Amazon.com. and Walmart Inc.'s Flipkart

Indian budget carrier SpiceJet Ltd. plans to sell shares in its logistics business in an initial public offering, as the rise of e-commerce drives demand for fast shipping across the region.

The one-year-old cargo division, known as SpiceXpress, could be listed on a stock exchange within 12 months, SpiceJet Chairman Ajay Singh said in an interview at Bloomberg’s New York headquarters on Tuesday. The business would continue to be owned by SpiceJet, he said.

“We have a country of 1.3 billion (130 crore) people, one of the fastest-growing economies in the world, and we have very few air logistics players,” he said.