Shiprocket Limited

IPO Size: Rs. 1,618 cr

• Fresh Issue of Rs. 886 cr (13% dilution) for (i) debt repayment of Rs. 210 cr of Rs. 245 cr gross debt as of 10.7.26 (ii) marketing Rs. 206 cr (iii) investing in technology infrastructure Rs. 160 cr (iv) unidentified acquisitions and general corporate purposes
• Offer for Sale (OFS) of Rs. 732 cr by 7 financial investors (25% combined stake to shrink to 14%) and 3 founders (11% combined stake to shrink to 7% post IPO)

• 3 of the 7 selling investors, LR India Fund, Moorie and AFOS, holding 6.1% combined stake, are fully exiting, at a loss of 28-40%, with cost price of Rs. 134 to Rs. 163 per share. 

Price band: Rs. 92-97 per share

• Only 10% for retail as company is loss making for all fiscals between FY23 to FY26

M cap: Rs. 7,058 cr (IPO is 23% of m cap)

IPO Date: Wed 12^th Aug to Fri 14^th Aug 2026, Listing Wed 19^th Aug 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

E-commerce Enabler

Shiprocket is a 14-year-old Gurugram headquartered e-commerce enablement platform, being the largest in India, with 2.1 lakh active customers and 42 courier partners. 73% of Rs. 2,024 cr revenue is generated from core shipping business segment, which clocks 12.6% adjusted EBITDA margin. Balance 27% comes from emerging business segments comprising checkout, marketing fulfilment, which is operating at -30% EBITDA margin as it is in growth phase.  

 

Loss making, despite Scale

Despite being India’s largest platform, Shiprocket continues to be loss-making, with net loss of Rs. 79 cr for FY26, including Rs. 53 cr in other income and Rs. 112 cr in ESOP cost. Contribution margin (gross margin in simpler parlance) of the core business with Rs. 1,500 cr topline is 21%, which is not very high for a fixed cost business. Company’s key expense head is employee cost, at nearly Rs. 400 cr annually.

 

Pricey Pickrr Acquisition may hound in future

Shiprocket acquired Pickrr Technologies in Jun 2022 for Rs. 1,128 cr, of which, Rs. 793 cr was paid in cash. From this acquisition, Rs. 787 cr goodwill still remains on books, as of 31.3.26. This goodwill will come up for impairment testing in the next 7 months. If any written-off materials, may be in part in current year or any of he next few years, although non-cash, it will delay company’s turnaround at the net profit level. A hidden danger not to be overlooked!

 

Valuation Red Flag

M cap of Rs. 7,058 cr and Enterprise Value of Rs. 6,260 cr implies a historic revenue multiple of 3.1x. This is unjustified for just Rs. 18 cr in adjusted EBITDA, implying EV/EBITDA multiple of 356x.

Smaller peer Unicommerce had listed with a lot of fanfare in Aug 2024, for its unique business and large addressable market. After 2 years, Unicommerce share price is down 22% despite remaining profitable and growing (topline doubled). Unicommerce trades at an EV/EBITDA multiple of 27x.

Market no longer seems to be finding favour with new-age professionally managed loss making companies, without identifiable promoters, where path to profitability is a distant future.  

In the last 10 years, Shiprocket has raised over Rs. 2,400 cr funds. On FY26 topline of Rs. 2,024 cr, the capital efficiency ratio is just 1.1x, excluding net cash of Rs. 600 cr. Such a low ratio does not indicate asset-light business and efficient deployment of capital.