India's logistics sector is poised for a significant IPO cycle, with several companies preparing to raise an estimated ₹8,000-9,000 crore. Driven by improving demand and a supportive policy environment, firms like Horizon Industrial Parks, Leap India, and Shiprocket are leading the fundraising wave.

Logistics firms enter last mile for IPO delivery, rev up for Rs 9,000 crore issues

India’s logistics sector is heading into a fresh IPO cycle, with a clutch of companies lining up to tap the primary markets amid improving demand visibility and a supportive policy backdrop.

Skyways Air Services, CJ Darcl Logistics, Leap India, Caliber Mining & Logistics, Shiprocket, Horizon Industrial Parks and Yatayat Corporation India Ltd have filed draft red herring prospectuses (DRHPs) with the Securities and Exchange Board of India (Sebi).

Together, these firms are expected to raise roughly ₹8,000-9,000 crore over the next few quarters.

Investor Confidence Rises in Sector’s Structural Growth

Horizon Industrial Parks is likely to anchor the fundraising wave with a planned issue size of around ₹2,600 crore, followed by Leap India Ltd and Shiprocket that are planning to raise around ₹2,400 crore each, while Skyways Air Services, CJ Darcl Logistics and Yatayat Corporation India are expected to launch mid-sized offerings.

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The upcoming logistics IPO pipeline reflects increasing confidence in the sector’s structural growth story, said Dharmesh Mehta, managing director & CEO — DAM Capital Advisors.

“Achieving India’s projected growth trajectory will be difficult without a meaningful scale up of the logistics eco system, which in turn requires access to growth capital,” he said.

Skyways Air Services, CJ Darcl Logistics, Leap India, Caliber Mining & Logistics and Shiprocket have already received regulatory approval to launch their IPOs.

The rush to public markets comes at a time when logistics companies are expanding capacity to cater to rising demand from e-commerce, manufacturing and infrastructure sectors.

Logistics Firms Enter the Last Mile for IPO Delivery

“Demand visibility has improved significantly over the past few quarters, driven by strong consumption trends and industrial activity,” said Deep Shah, a senior manager at Unistone Capital Pvt Ltd, a merchant banking firm. “Companies are now looking to strengthen their balance sheets and fund expansion through public capital. At the same time, global geopolitical tensions and disruptions in key trade routes have added complexity to supply chains.”

Higher freight and insurance costs, along with volatility in fuel prices, have forced companies to recalibrate pricing strategies and optimize operations, said Shah.

The valuation benchmark that looms over the current pipeline is Delhivery, which raised ₹5,235 crore in its May 2022 IPO but spent nearly two years trading below its issue price before recovering. That experience may prompt institutional investors to be choosy.

“The market has a longer memory now,” said Dev Chandrasekhar, partner at Transcendum, a valuations branding advisory. “Logistics remains a great sector, but pricing needs to reflect the capital intensity honestly.”

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