Delhivery IPO Sets Price Band At INR 462-487 Per Share

The logistic unicorn Delhivery’s Initial Public Offering (IPO) for INR 5,235 Crore shares is all set to open for subscription on Stock Exchange on May 11 with price band of INR 462-487 per share. The company is valued at INR 35,284 Crore, according to a virtual press conference by the supply chain company. Delhivery, last year planned the size of its IPO of INR 7,460 Crore which has been cut down to INR 5,235 Crore.

Bidding for anchor investors will open on May 10 while the initial share sale will come to an end on May 13. Delhivery, last year planned the size of its IPO of INR 7,460 Crore which has been cut down to INR 5,235 Crore.

The break-up of public offering is fresh issuance of equity shares worth INR 4,000 Crore and an Offer for Sale (OFS) component of INR 1,235 Crore by existing shareholders.

The proceeds of fresh issue will be utilised for funding organic growth initiatives, inorganic growth via acquisitions and other strategic initiatives. The money will also be utilised for common corporate purposes.

The investors can bid for minimum 30 equity shares thereof.

Accordingly, existing investors including Carlyle Group and Soft Bank will divest their holdings in the company meanwhile; co-founders of the company will also offload their shares in the company.

Carlyle Group’s entity CA Swift Investments likely to sell shares of INR 454 Crores, SVF Doorbell (Cayman) Ltd which has nearly 22 per cent of shares in the company will offload INR 365 Crore shares.

Meanwhile, Deli CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, L.P. Will sell shares worth INR 200 Crore and Times Internet will sell shares of INR 165 Crore.

Co-founders of the company, Kapil Bharati, Mohit Tandon and Suraj Saharan will sell their shares worth INR 5 Crore, INR 40 Crore and INR 6 Crore respectively.

According to RHP, currently, Doorbell (Cayman) Ltd, an arm of SoftBank owns 21.98 per cent stakes, Nexus venture III Ltd owns 8.91 per cent stakes, CA Swift Investment holds 7.16 per cent stakes, and Canada Pension Plan Investment Board has 6.81 per cent and Internet Fund III Pte. Ltd. has 5.88 per cent while Times Internet Limited owns 4.92 per cent stakes in the company.

Sharing his thoughts with leading business daily, Sandeep Barasia, MD & Chief Business Officer, Delhivery said that the company has reduced the OFS as the shareholders wanted to stay invested in the business. He said, “The OFS is a very small component of the overall issue. It is mostly a primary issue and as the OFS issue was reduced by 50% because shareholders wanted to stay invested in the company.”

Meanwhile, speaking about the company’s key business strategies, Delhivery’s Executive Director and Chief Business Officer Sandeep Barasia said the company will focus on expanding investment in infrastructure and network while continuing to build scale in existing business lines, deepen the customer relationships, enhance the technology capabilities, expand into high growth international markets similar to India, and pursue strategic alliances and select acquisitions and investment opportunities.

This e-commerce company operates across India providing services including express parcel delivery, heavy goods delivery, and warehousing, supply chain solutions to various e-commerce marketplaces, small businesses and manufacturing units.

The company provides services in 17,045 postal index number (PIN) codes.

The Gurugram-based company said about five customers contributed to more than 40 percent of its revenues in FY21.

Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers to the issue.

The equity shares of the supply chain company will be listed on the stock exchanges BSE and NSE on May 24.

In August 2021, Delhivery acquired Spoton to further scale their partial truckload (PTL) freight services business.

IPO is a process through which an unlisted Company can be listed on the stock exchange by offering its securities to the public in the primary market.

Basic Eligibility Requirement for listing the company in the market

The company should be registered as a Public Company under Companies Act 1956 or Companies Act 2013. It should be three years old and should have a positive net worth of two years. Post issue paid-up capital should not be more than 25 crore. Documents requirement for NSE Listing. A profile of the promoters and company management. Company profile with details of project undertaken. Certified Copies of Annual Report for the last 3 years. Certified Copies of Draft Offer Document. Certified copies of Memorandum & Articles of Association of the company.5 years projected business plan with the balance sheet, PL & cash flow.