Logistics and supply chain startup, Delhivery Ltd, has set the price band of its initial public offering (IPO) at Rs 462-487 a share, valuing the company at Rs 35,283 crore at the top end of the band. The IPO will open on May 11 for subscription and close on May 13. The public issue comprises the fresh issuance of shares worth Rs 4,000 crore. The offer for sale (OFS) portion has been reduced to Rs 1,235 crore from Rs 2,460 crore. Upon successful listing on BSE, NSE, Delhivery will join the likes of Blue Dart Express, TCI Express, and Mahindra Logistics.
Delhivery IPO: Objective
The proceeds from the issue will fund the company’s organic and inorganic growth initiatives via acquisitions and other strategies.
Delhivery IPO: Price Band & Lot Size
Delhivery has fixed a price band of at Rs 462-487 per share for its Rs 5,235-crore IPO. The investors can bid for a minimum of 30 shares and in its multiple thereafter.
Delhivery IPO: Reserved Portions & Discounts
The company has allocated shares worth Rs 20 crore to eligible employees, who will get a discount of Rs 25 per equity share during the bidding process. The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation, and the remaining 10 per cent shares will be available for retail bidders.
Delhivery IPO: Allotment & Listing Dates
The book running lead managers to Delhivery IPO are Kotak Mahindra Capital Company, Morgan Stanley India Company Private Limited, BofA Securities India Limited, and Citigroup Global Markets India Private Limited. The registrar to the issue is Link Intime India Private Limited. The company will finalise the basis of allotment with designated stock exchange on 19 May, and initiation of refunds or unblocking of funds from ASBA accounts will take place on 20 May. The equity shares will get credited to demat accounts of allottees on 23 May. Delhivery IPO shares are likely to get listed on BSE and National Stock Exchange on 24 May.
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 Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund.
Delhivery IPO: GMP
Shares of logistics and supply-chain startup Delhivery Ltd are down nearly 40 percent in the unlisted market from the peak of Rs 950 apiece in January ahead of its initial public offering (IPO). The stock is quoting at Rs 550-600 per share on thin trading volume, a dealer said.
Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told News18.com that “Delhivery is the largest and fastest-growing fully-integrated logistic services player in India by revenue as of FY21 covering 17,488 pin codes. Digital native business models like E-commerce, Social commerce are major drivers of growth for the express parcel delivery segment where Delhivery holds almost 22 per cent market share. The revenue growth has been robust with 49 per cent CAGR from FY19-21. However, losses have raised in a similar fashion. The offer is priced at almost 5.5x Mcap-to-Revenue based on post fresh issue and annualized metrics of 9MFY22. The valuations seems to be in-line with peers but the company being loss-making makes the issue look expensive. Dicey market sentiments and concern of investors towards loss-making start-ups may dampen the interest."
Delhivery IPO: About Delhivery
Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 percent of the 19,300 PIN codes in India. The Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund.
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.