Highlights
- Shiprocket shares jump nearly 48 pc in market debut trade.
- The company commanded a market valuation of Rs 10,440.74 crore.
- The Shiprocket IPO was subscribed 99.38 times on the last day of bidding on Friday.
Shiprocket IPO after listing: Following it’s listing today, Shiprocket MD and CEO Saahil Goel exclusively has discussed the company’s next phase of growth. Shiprocket is also looking to expand it’s role in the e-commerce ecosystem beyond logistics with it’s emerging business spanning advertising and marketing, checkout, fulfilment, cross-border services and other merchant solutions.
Goel explains how deeper adoption of Shiprocket’s products could allow the platform to solve more merchant needs, strengthen engagement and unlock additional growth opportunities.
Goel said, “If there is a 1,000-rupee order that they process, they have to get the raw material, buy it from somewhere and source it, then they have to advertise it. Then they have to run the technology to process the payments and then they have to ship it.”
Advertising and marketing seen as a larger spending opportunity
“In general terms, a larger part of their spend goes towards advertising and then obviously sourcing, and then there is logistics,” Goel added.
Shiprocket aims to solve more problems for the same merchant
“The advertising marketing checkout bit sits in our emerging business and is growing, and that is a larger surface area available there compared to that in shipping,” the executive said.
Shares of e-commerce enablement platform Shiprocket Ltd on Wednesday ended nearly 48 per cent higher than the issue price of Rs 97.
At the NSE, the stock made its market debut at Rs 131, a premium of 35 per cent. Shares of the firm ended at Rs 143.45, up 47.88 per cent.
The company commanded a market valuation of Rs 10,440.74 crore.
The Shiprocket IPO was subscribed 99.38 times on the last day of bidding on Friday. The Rs 1,617.5-crore IPO had a price band of Rs 92-97 per share.
The issue comprised a fresh issuance of equity shares worth up to Rs 885.50 crore and an Offer-for-Sale (OFS) of shares aggregating up to Rs 732 crore.
The company plans to use proceeds from the fresh issue to invest in marketing initiatives and strengthen technology infrastructure across its core and emerging businesses. Funds will also be used to repay or prepay certain borrowings, pursue potential acquisitions and meet general corporate purposes.
Backed by Temasek and Zomato, Shiprocket has evolved from a shipping service provider into a full-stack e-commerce enablement platform serving direct-to-consumer brands and micro, small and medium enterprises.
The company operates across two segments – Core Business and Emerging Business.
Its core business includes domestic shipping and shipping applications, while its emerging businesses comprise cargo and fulfilment, cross-border shipping, advertising and marketing solutions, capital solutions and hyperlocal deliveries.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
