Delhivery IPO: delhiveryThe logistics and supply chain startup will open its initial public offering on May 11 and close on May 13. The company aims to raise Rs 5,235 crore from its maiden offering. delhivery It is the largest fully integrated logistics services company in India by revenue. It has created a network covering every state, serving 88 percent of the 17,045 pin codes or 19,300 pin codes in India. The Gurugram-based company became a unicorn – valued at over $1 billion – when it raised $413 million in 2019 in a Series F round led by SoftBank Vision Fund.
delhivery ipo price band
price band for delhivery ipo 462-487 has been fixed at Rs. Investors can bid in a minimum of 30 equity shares and multiples thereof. Employees will get a discount of Rs 25 per equity share.
delhivery ipo issue size
Delhi’s IPO issue is estimated to be around Rs 5,235 crore, which includes fresh issue of Rs 4,000 crore and offer for sale of Rs 1,235 crore.
delhivery ipo reserve
The company has set aside 10 per cent for Retail Individual Investors (RIIs). About 75 per cent of the total offering is allocated to Qualified Institutional Buyers (QIBs). The company has kept a reserve of 15 per cent for non-institutional investors (NIIs).
delhivery ipo share
CA Swift Investments, a unit of Carlyle Group, will sell shares worth Rs 454 crore. SVF Doorbell (Cayman) Ltd, a unit of SoftBank Group, will sell shares worth Rs 365 crore. Daily CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, LP will sell shares worth Rs 200 crore and Times Internet will sell shares worth Rs 165 crore.
Additionally, Delhivery’s co-founders – Kapil Bharti, Mohit Tandon and Sooraj Saharan – will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore respectively.
delhivery ipo gmp
According to market watchers, Delhivery shares are available at a premium (GMP) of Rs 16 in the gray market during the weekend. Shares of Delhivery in the unlisted market have fallen nearly 40 per cent from a peak of Rs 950 in January. An expert said that the stock is trading at Rs 550-600 on thin trading volume.
delhivery ipo objective
Delhivery plans to use the money raised from its initial public offering for organic growth initiatives. It will allocate funds for inorganic development through acquisitions and strategic initiatives and for general corporate purposes.
Delhivery IPO: Key Features
Delhivery was incorporated in June, 2011, Delhivery is the largest and fastest growing fully integrated logistics services company in India by revenue by FY 2021. It operates a pan-India network and provides its services in postal index number code of 17,488 as on December 31, 2021.
It provided supply chain solutions to a diverse base of enterprises and SMEs across multiple verticals such as e-commerce marketplaces, direct-to-consumer e-tailers, and 23,113 active customers. About 64 per cent of the revenue generated by the company was from loyal customers who have been transacting for three years.
Delhivery IPO Financials
According to its share-sales brochure, Delhivery has never reported a profit. The company reported a loss of Rs 891.14 crore for the nine months ended December 2021 and a loss of Rs 415.7 crore in FY21. The revenue in the nine months ended December was Rs 4,911 crore and in FY15 was Rs 3,838 crore. It reported negative free cash flow of Rs 246 crore in FY2011, up from Rs 848 crore in FY10. Freight, handling and servicing costs rose to Rs 3,480 crore in the first nine months of FY12 from Rs 2,026 crore in FY11.
Delhivery IPO Major Risks
Analysts said some of the key risks that are critical to Delhi’s operating model include: heavy reliance on e-commerce despite diversity in other industry verticals, network partners for transport vehicles and employees, and reliance on other third parties, Low entry barriers in many of the segments in which it operates, which has increased competition from organized and unorganized players, and reliance on a few large customers who contribute significantly to its business.
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