India’s largest fully integrated logistics company, Delhivery’s IPO, is likely to open for subscription on May 11 and close on May 13. Further, basis for allotment will be on May 19 and the shares will be credited to the demat account on May 23. The firm will list on exchanges on May 24. Delhivery plans to open the issue next week after a positive response to recent IPOs of Rainbow and Campus, which made investment bankers confident of generating a good response, sources have said.
Meanwhile, the firm has cut its total issue size to Rs 5,235 crore from Rs 7,460 crore planned earlier. It will now raise Rs 4,000 crore via the fresh issue and Rs 1,235 crore through an offer for sale (OFS), the bankers told Moneycontrol.
Fosun group-owned China Momentum Fund, via its affiliate Deli CMF Pte Ltd, will sell up to Rs 200 crore. The OFS will comprise up to Rs 454 crore by CA Swift Investments, up to Rs 365 crore by SVF Doorbell Ltd, and up to Rs 165 crore by Times Internet.
Delhivery co-founders will also participate in the OFS. Kapil Bharati will sell shares worth Rs 5 crore, Mohit Tandon will sell shares worth Rs 40 crore and Suraj Saharan is selling up to Rs 6 crore worth of shares.
The Gurgaon-based startup held a board meeting on Saturday to finalise its IPO. The board cleared the plan, and the offer is likely to launch its issue next week after the LIC IPO subscription window closes on May 9.
Kotak Mahindra Capital, Morgan Stanley, BofA Securities, and Citigroup are the issues’ bankers.
With a 22.78 per cent stake, SoftBank Holding is the largest shareholder in the company, while Nexus Ventures and CI Swift Holdings (Carlyle) hold a 9.23 per cent and 7.42 per cent stake. Kapil Bharati holds 1.11 per cent, Mohit Tandon owns 1.88 per cent, and Suraj Saharan has a 1.79 per cent stake.
As a part of its plan to go public, the logistics major appointed three industry veterans as independent directors. This includes Kalpana Morparia, the former chairman of JP Morgan South and Southeast Asia, Romesh Sobti, former CEO and managing director of Indusind Bank; and Saugata Gupta, CEO and managing director of Marico.
For the fiscal year 2021, its total income stood at Rs 3,838.29 crore against Rs 2,988.63 crore a year ago. Net loss for the period widened to Rs 415.74 crore from Rs 268.93 crore in the previous year.
According to the DRHP, it claims to be the largest and fastest-growing fully integrated logistics player in India by revenue as of Fiscal 2021. Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, truckload freight, warehousing, and supply chain solutions. The company achieved Unicorn status two years back.
With its 120+ gateways, 20+ automated sort centres, 80+ fulfilment centres and 2,200 direct delivery centres, the company has covered 90 per cent of the country, operating over 15 million sq ft of leased infrastructure at a pan-India level. It provides supply chain solutions to a diverse base of 21,342 active customers, such as e-commerce marketplaces, D2C e-tailers, and enterprises and SMEs across verticals like FMCG, consumer durables, liftstyle, retail, automotive and manufacturing.