Delhivery IPO: Delhivery, a logistics and supply chain startup, will open its first public offering on May 11 and close on May 13. The company aims to raise Rs 5,235 crore from its initial offer. Delhivery is the largest fully integrated logistics provider in India by revenue. It has built a network that covers every state and serves 17,045 PINs, or 88 percent of India’s 19,300 PINs. The Gurugram-based company became a unicorn — valued at over $1 billion — when it raised $413 million in a Series F round led by SoftBank Vision Fund in 2019.
Delhivery IPO Price Band
The price range for Delhivery IPO is set at Rs 462-487. Investors can bid on a minimum of 30 shares and in multiples thereof. Employees will be given a discount of Rs 25 per share of shares.
Delhivery IPO Issue Size
Delhivery’s IPO issuance is about Rs 5,235 crore, consisting of a new issue of Rs 4,000 crore, and an offer for sale of Rs 1,235 crore.
Delhivery IPO Reserved Portions
The company has reserved 10 percent for private individual investors (RII). About 75 percent of the total supply is allocated to Qualified Institutional Buyers (QIB). The company has reserved 15 percent for non-institutional investors (NII).
Delhivery Share IPO
CA Swift Investments, an entity of Carlyle Group, will sell shares for an amount of Rs 454 crore. SVF Doorbell (Cayman) Ltd, a branch of Softbank Group, will sell shares worth Rs 365 crore. Deli CMF Pte Ltd, a wholly owned subsidiary of the private equity fund China Momentum Fund, LP will sell shares worth Rs 200 crore and Times Internet will sell shares worth Rs 165 crore.
In addition, the co-founders of Delhivery – Kapil Bharati, Mohit Tandon and Suraj Saharan – will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore respectively.
Delhivery IPO GMP
According to market observers, Delhivery shares will be available at a premium (GMP) of Rs 16 in the gray market over the weekend. Shares of Delhivery have fallen nearly 40 per cent in the privately held market from a peak of Rs 950 apiece in January. The stock is trading at Rs 550-600 on minor trading volumes, an expert said.
Delhivery IPO Targets
Delhivery plans to use the funds raised from the IPO for organic growth initiatives. It will also allocate funds for inorganic growth through acquisitions and strategic initiatives and for general corporate purposes.
IPO in Delhivery: key highlights
Delhivery was established in June 2011, Delhivery is the largest and fastest growing player in fully integrated logistics services in India measured by revenue as of fiscal 2021. It operates a pan-Indian network and offers its services in 17,488 postcodes with index numbers , as of December 31, 2021.
It provided supply chain solutions to a diverse base of 23,113 active customers, including e-commerce marketplaces, direct-to-consumer e-tailers, and enterprises and SMEs across industries. About 64 percent of the company’s revenue came from loyal customers who have been transacting for three years.
Delhivery IPO Financials
Delhivery has never reported profits, according to the 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.
Delhivery IPO Main Risks
Analysts said some of the key risks material to Delhivery’s business model include heavy reliance on e-commerce despite diversification into other verticals, reliance on network partners and other third parties for transportation vehicles and personnel, lower barriers to entry in many of the segments in which it operates, which has increased competition from organized and disorganized players, and its dependence on certain large customers who make significant contributions to its business.
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