Key Highlights
- Delhivery plans to acquire Ecom Express for ₹1,407 crore.
- Ecom Express will become a subsidiary of Delhivery, pending regulatory approvals.
- The acquisition will enhance logistics infrastructure, technology, and service reach.
- Delhivery has appointed legal and financial advisors for the process.
- The transaction is expected to be completed in six months, subject to approvals.
Overview of the Acquisition
Logistics giant Delhivery has revealed plans to acquire its competitor, Ecom Express Limited, for a proposed sum of ₹1,407 crore. According to Delhivery’s announcement in a regulatory filing, the acquisition will result in Ecom Express becoming a subsidiary, contingent upon regulatory approvals and standard closing conditions.
Official Statement
The company stated, “The board has approved executing a share purchase agreement between the company, Ecom Express, and its shareholders, alongside other transaction documentation required. Upon completion, Ecom Express will operate as a subsidiary of Delhivery.”
Statements from Leadership
Sahil Barua, Managing Director and CEO of Delhivery, commented, “The Indian economy demands constant advancements in cost efficiency, speed, and logistics reach. This acquisition will better our ability to service customers through ongoing investments in infrastructure, technology, and personnel.”
Ecom Express founder K Satyanarayana added, “This partnership marks a pivotal growth phase. Together, our strengths can deliver unparalleled benefits for businesses and further the logistics industry’s development.”
Timeline and Regulatory Process
The acquisition faces approval from the Competition Commission of India (CCI) before completion. Delhivery estimates the process to conclude within six months from the share purchase agreement date, with room for a timeframe extension upon mutual agreement.
Advisory Roles
Delhivery has engaged Shardul Amarchand Mangaldas & Co for legal advice and Ernst & Young to oversee financial and tax due diligence.
Financial Standing of Ecom Express
Founded in August 2012, Ecom Express is a prominent logistics firm headquartered in Gurugram, Haryana. Its revenue figures for recent financial years are impressive, amounting to ₹2,090 crore in 2022, ₹2,548 crore in 2023, and ₹2,607 crore in 2024. The company’s authorized share capital stands at ₹2,400 crore, with a paid-up share capital of ₹420.73 crore.
Sahil Barua on Ecom Express
Acknowledging Ecom Express’s contributions, Barua said, “The founders and management have built a robust network and high-quality team, establishing a strong foundation for integration into Delhivery’s ecosystem.”
Past Controversies
The acquisition follows a period of tension between the two companies. Last year, Delhivery raised concerns about inaccuracies in Ecom Express’s shipment metrics and profitability data presented in its draft red herring prospectus (DRHP). This included differences in how shipments were accounted for, leading to higher volume claims by Ecom Express. Delhivery had argued that shipments returned to the origin should count as one unit, in contrast to Ecom Express’s practice of counting them as two.
Frequently Asked Questions (FAQs)
What is the acquisition amount?
Delhivery plans to acquire Ecom Express for ₹1,407 crore.
When will the acquisition be finalized?
The transaction is expected to conclude within six months, pending approvals from the Competition Commission of India.
What are the benefits of this acquisition?
The partnership is set to enhance logistics reach, cost efficiency, and overall service quality across India.
Who are the advisors for this deal?
Shardul Amarchand Mangaldas & Co act as legal advisors, while Ernst & Young oversee financial and tax-related diligence.
What are the financial highlights of Ecom Express?
Ecom Express posted revenues of ₹2,090 crore in 2022, ₹2,548 crore in 2023, and ₹2,607 crore in 2024, with a paid-up share capital of ₹420.73 crore.
Why were there controversies between the two companies?
Delhivery previously accused Ecom Express of misreporting shipment volumes and profitability metrics, which inflated their figures in the draft red herring prospectus.
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