DTDC planning IPO

Indian courier company DTDC is planning an initial public offering (IPO) to fund its expansion strategy. Abhishek Chakraborty, executive director of DTDC Express, was quoted by the Times of India as saying: “We are infusing Rs 200 crore to expand our business by FY16-17 but that’s not enough. So, we are ready to go public to tap funds for future growth. A 20% dilution will fetch us Rs 600 crore and help us become India’s largest logistics firm by 2020 in terms of market share.” (A crore is a unit in the Indian numbering system equivalent to 10 million.)

DTDC, which is currently 40% owned by La Poste’s international express parcel division GeoPost, was established in 1990 by Subhasish Chakraborty. The company has since expanded beyond its Indian base to countries including the United Arab Emirates, Kuwait and Australia.  As reported last week, DTDC has reportedly been looking at the feasibility of working with GeoPost in the South African market.

DTDC’s principal rival in the Indian delivery market is Blue Dart Express, which is majority-owned by DHL.