Delhivery IPO: The initial public offering (IPO) of logistics company Dehivery Limited had a good bid price on the closing day, as opposed to the first two days of bidding where only 23 percent were subscribed. As of day 3 of the bidding, the Delhivery IPO saw a 1.63 bid on the shares on offer, mainly due to an excellent response from Qualified Institutional Buyers (QIB). The share allotment for the 5,235 crore Delhivery IPO was already done two days ago, and investors who won the bids are likely to see credit in their demat accounts by Monday, May 23.
Delhivery IPO GMP today
According to gray market observers, Delhivery IPO GMP (Gray Market Premium) today is minus Rs 5, which is unchanged from yesterday’s gray market premium. Market observers said Delhivery IPO GMP today is minus Rs 5, meaning the gray market expects Delhivery’s IPO to be around Rs 482 (Rs 487 – Rs 5), which is about 1 percent below the top end of the Delhivery price of Rs 487 per share share
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.
What experts say about Delhivery IPO profit
Market analysts said that given the expensive valuations of the Delhivery IPO and unfavorable market conditions, the issue could be listed at a discount on the NSE and BSE.
“The Delhivery IPO received a dismal response from investors. The issuance, however, continued to be supported by the subscription of QIB investors. The company has posted robust revenue growth, but losses have also increased in a similar fashion, leaving investors wary. Expensive valuations and unsupportive market conditions may dampen the listing. The IPO could trade around the issue price and if market conditions deteriorate, we could even see a discount listing in the offing,” said Abhay Doshi, founder of UnlistedArena.com, trading pre-IPO and unlisted stocks.
Delhivery IPO Financials
Delhivery has never reported profits, according to its share sale prospectus. The company made a loss of Rs 891.14 crore for the nine months ended December 2021 and recorded a loss of Rs 415.7 crore in FY21. Turnover was Rs 4,911 crore in the nine months ended December and Rs 3,838 crore in FY21. It reported negative free cash flow of Rs 246 crore in FY21 versus Rs 848 crore in FY20. Freight, handling and maintenance costs rose to Rs 3,480 crore in the first nine months of FY22, from Rs 2,026 crore in FY21.
The Delhivery IPO opened on May 11 and closed on May 13. The Delhivery IPO is expected to hit the exchanges on May 24. The public number is listed on both NSE and BSE.
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