Tea Post Files Draft Papers for IPO...
14 Jun, 2025
E-commerce logistics platform Shiprocket, a prominent player in India’s rapidly evolving digital commerce landscape, has taken a significant step towards entering the public markets. The company, backed by marquee investors such as Zomato and Temasek, has confidentially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise ₹2,500 crore through an initial public offering (IPO).
Shiprocket has chosen the confidential pre-filing route for its DRHP submission. This approach, permitted under SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations, allows companies to keep sensitive IPO details out of the public domain until later stages of the process. This method is increasingly popular among high-profile startups, as it offers greater flexibility and privacy during the initial regulatory review.
In its public notice, Shiprocket stated, “The pre-filed Draft Red Herring Prospectus has been submitted with SEBI and the stock exchanges under the ICDR Regulations about the proposed initial public offering of its equity shares on the main board of the stock exchanges”.
Shiprocket’s IPO will feature a fresh share issue worth between ₹1,000 crore and ₹1,200 crore, with the remainder likely to come from an offer for sale by existing investors. The company has enlisted leading investment banks, including Axis Capital, Kotak Mahindra Capital, JM Financial, and Bank of America, to manage the issue.
The proceeds from the IPO are expected to be deployed across several strategic areas:
Shiprocket has demonstrated robust growth in recent years. For the financial year 2023-24, the company reported a 21% year-on-year increase in operating revenue, reaching ₹1,316 crore. However, the company incurred a net loss of ₹595 crore in FY23, attributed largely to restructuring costs and investments in scaling operations.
Despite these losses, Shiprocket has made notable progress in controlling its cash burn. The company reportedly halved its cash EBITDA burn in FY24, reflecting improved operational efficiency and a path towards profitability.
Shiprocket’s move comes amid heightened activity in India’s primary markets. The first four months of 2025 saw ten mainboard IPOs listed, although market volatility led to a pause in new listings during March and April. Hexaware Technologies currently holds the title for the largest IPO of the year, and several major companies, including Reliance Jio, are also preparing to tap the public markets.
Notably, market sentiment has been mixed, with three out of the ten IPOs listed in 2025 delivering negative listing returns. Nonetheless, the surge in IPO activity has contributed to increased capital formation and overall market stability in FY25.
While Shiprocket has not disclosed a definitive timeline for its IPO, industry observers expect the offering to generate significant interest, given the company’s strong growth trajectory and the backing of high-profile investors. The IPO is poised to provide Shiprocket with the capital needed to further entrench itself as a leader in India’s e-commerce logistics sector, as the country’s digital economy continues to expand at a rapid pace.
