Temasek-backed Shiprocket takes off with US$1 billion valuation after strong India debut
This comes as investors bet on the logistics services firm’s tech-led approach to capitalise on the rapidly growing e-commerce ecosystem
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[MUMBAI] Temasek-backed Shiprocket zoomed as much as 48.6 per cent in its debut trade on Wednesday (Aug 19), valuing it at 100.1 billion rupees (US$1.05 billion).
This comes as investors bet on the logistics services firm’s tech-led approach to capitalise on India’s rapidly growing e-commerce ecosystem.
Its shares traded at 142 rupees, compared with the issue price of 97 rupees apiece.
India’s online retail gross merchandise value is expected to grow at a compounded annual rate of 20 to 25 per cent between 2025 and 2030, driven by increasing Internet penetration, rising digital payments adoption and growing demand from consumers in smaller cities and towns, said analysts.
Shiprocket, which competes with Delhivery and Blue Dart Express, operates an integrated logistics platform that helps manage shipping, fulfillment, payments and other online commerce operations.
“Its asset-light, technology-driven model supports scalability and efficiency, while debt reduction from IPO proceeds is expected to improve profitability,” Geojit Financial Services said last week.
Shiprocket’s initial public offering is among India’s largest technology listings this year, and comes on the back of a pickup in primary market activity following this year’s muted first half.
It is also the third Temasek-backed company to go public in August, after Manipal Health Enterprises and Milky Mist Dairy Food.
Shiprocket plans to use the IPO proceeds for investments in technology and product development, strategic acquisitions, expanding its fulfillment and logistics network, and general corporate purposes.
The IPO was subscribed 99.4 times, with retail investors bidding 46.4 times the number of shares set aside and institutional investors bidding 122.8 times their portion.
Shares of Shiprocket closed at 143.45 rupees, up 12.45 rupees or 9.5 per cent from its debut price. REUTERS
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