Delhivery IPO: Leading logistics company Delhivery’s initial public offering (IPO) has received a muted response so far. From day 1, 21 percent was subscribed to the issue, while the issue was subscribed to only 23 percent from the second bidding day. This means that from day 2, the Delhivery IPO received bids for 1.45.01.730 shares against 6.25.41,023 shares that were on sale. The Delhivery IPO will open for subscription on Wednesday, May 11 and close on Friday, May 13, after three days of bidding. The company’s primary work includes logistics services. Delhivery offers express parcel delivery, heavy goods delivery, warehousing and collection services, among others.
The Delhivery IPO, the second largest for Dalal Street in calendar year 2022 (CY22) after LIC, is expected to fetch Rs 5,235 crore from the initial bid. The price range for the Delhivery IPO has been set at Rs 462 to Rs 487 per share of shares. The IPO consists of a new issue worth Rs 4,000 crore and an offer for sale of Rs 1,235 crore. The song is expected to be released on both NSE and BSE on May 24.
Delhivery IPO GMP today
With the muted response from investors, Delhivery IPO’s unlisted shares are also not doing well in the gray market. The Delhivery IPO GMP today is Rs 2, according to market observers. This means that at the higher end of the price range, Delhivery shares are expected to trade at Rs 489. The Delhivery IPO will close today
However, according to market experts, GMP of an IPO is not a reliable source because it is unregulated and unofficial data. So those who follow GMP are advised to also go through the financial records of the company as the balance sheet of the company will give a better idea of the fundamentals of the company.
Delhivery IPO Subscription Status
As of Day 2 of Thursday’s opening, the Delhivery IPO received a muted response from bidders who placed bids for 1.45.01.730 shares against 6.25.41,023 shares that were on sale. The issue was only booked for 23 percent on day 2, while non-institutional subscribers booked only 1 percent of their reserved portion. Private retail investors subscribed for 40 percent of their allotted shares, while qualified institutional buyers made an offer for 29 percent of the share reserved for their class.
Delhivery IPO: Should You Enroll on Day 3?
Angel One | Rating neutral
Based on annualized FY22 numbers, the IPO is priced at EV/Sales of 4.8x and a price-to-book value of 5.2x in the upper end of the IPO. For 9MFY22, the company has reported an EBITDA loss of 232 crores and a net loss of ₹891 crores. In the Indian markets, no other peer group has the same business model as Delhivery. The company has reported good revenue growth of 82% in 9MFY2022 and is expected to have positive EBITDA by the end of FY2022. Given the expensive valuation, we assign a NEUTRAL recommendation to the Delhivery IPO.
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