According to three persons familiar with the matter, DTDC Express Ltd, one of India’s leading courier service providers, has started work on an initial public offering (IPO) to raise up to 1,000 crore and aims to go public later this year. The courier company wants to use some of the profits from the IPO to improve its technology platform in order to compete with fresher tech-enabled delivery companies that have fueled India’s rapid e-commerce growth.
“Since work has just started on the IPO, the company has still not finalized the quantum of equity stake to be diluted or the amount to be raised through it, but the size of the fundraising is likely to be around ₹500-1,000 crore,” said the first person cited above, requesting anonymity. Some existing shareholders may also sell their shares, the person shared.
The funds gained from the sale of new shares will most likely be used to strengthen the company’s technological skills and improve its logistics infrastructure, according to the second individual, who also requested anonymity.
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Subhasish Chakraborty founded DTDC in Bengaluru in 1990. For both retail and business customers, the company provides specialised courier services to both domestic and international areas. DTDC operates in New York, London, Dubai, Toronto, Singapore, Hong Kong, China, and Australia through its models. Through partners, it also has a presence in Nepal, Bhutan, Sri Lanka, Kenya, and Turkey.
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The company has hired a financial institution and two law firms to prepare for the IPO, according to the first individual, who also claimed that the company is likely to go public within next 12 months.
According to records from the registrar of companies, France’s DPD Group owns 42.5 percent of DTDC, while the founder and other individual shareholders own the rest as of March 31, 2021. DTDC Express did not respond to any email sent to a spokesman until after press time.
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The company claims to have 570 working locations and 48 hubs across the country, as well as 1,000,000 square feet of warehousing space and a fleet of over 1,500 trucks. In FY20, DTDC handled 143 million shipments, up from 128 million the year before.
