Delhivery has acquired a 99.4% stake in Ecom Express for ₹1,407 crore from key investors such as Warburg Pincus, Partners Group, and British International Investment—far below the ₹7,000 crore valuation Ecom Express previously targeted during its IPO plans. This distressed deal has sparked discontent among minority shareholders, who collectively own the remaining 0.6% and claim they were left out of the decision-making process. One such investor, Anish Jhaveri, who holds 0.5%, is reportedly exploring legal options. However, legal experts point out that unless specific rights are outlined in the shareholder agreement, minority investors have limited options, especially since Delhivery now qualifies to initiate a “squeeze-out” under Section 236 of the Companies Act, allowing it to purchase the remaining shares at a valuation set by an independent expert. Post-acquisition, Ecom Express has laid off over 150 employees and shut down certain operations. Despite minimal revenue growth of 2.2% in FY24, the company has reduced its losses compared to the previous year. The transaction is still subject to approval from the Competition Commission of India and other regulators.
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