The company's ₹5,235-crore public issue comprises a fresh issue of up to ₹4,000 crore and an offer for sale of up to ₹1,235 crore. Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company.
Price range for the IPO is at ₹462-487 per share. On Tuesday, Delhivery raised ₹2,347 crore from anchor investors. As per market observers, Delhivery shares' premium (GMP) is at ₹2 in the grey market today. Shares of the company are expected to list on stock exchanges BSE and NSE on Tuesday, May 24, 2022.
Proceeds of the fresh issue will be used towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes. Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery and warehousing.
“We recommend Subscribe rating from a long term perspective given it being largest and fastest growing 3PL express parcel delivery player, having unified infrastructure network, vast amount of data intelligence and R&D, experienced professional management team and strong relationship with diversified customer base," said Yes Securities.
“Delhivery has shown strong growth and built a recognisable brand in a segment marred by intense competition and low barriers to entry. With a pan-India presence and diversification into other segments (LTL, omnichannel etc), the management seeks to utilise the scale to further optimise, crossutilise its network and lower costs. However, we await further progression on path of achievement of positive cash flows," said ICICI Securities.
