Delhivery, a big logistics company, is set to buy its rival, Ecom Express, for Rs 1,407 crore in cash. This deal is huge for India’s logistics industry! Ecom Express was once valued at over Rs 7,000 crore last June but has faced challenges recently, leading to this major drop in value. They even had to cancel their planned IPO last year.
With this purchase, Delhivery will gain a 99.4% ownership of Ecom Express after getting the green light from regulators. The CEO of Delhivery, Sahil Barua, said that this move will help them reach more customers and improve delivery speeds in India. Delhivery has Rs 5,488 crore in cash, showing they have the funds to make this move.
This acquisition will help Delhivery grow and compete better in the logistics world. Right now, Delhivery’s shares are considered a good buy by many experts, with an average target price of Rs 406. As of now, shares are priced at Rs 258.2, down 2%. The company’s value has decreased by 26% this year and 44% in the past year.
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