Delhivery IPO likely to open for subscriptions on May 11, 2022, close on May 13, 2022 ; issue size reduced to Rs 5,235 crore

Delhivery IPO likely to open for subscriptions on May 11, 2022, close on May 13, 2022

Delhivery plans to open the issue next week after receiving a positive response to the recent Rainbow and Campus IPO. A day after LIC IPO closes, Delhivery’s IPO is opening for subscription.

Delhivery’s IPO, India’s largest fully integrated logistics company, will open for subscription on May 11 and is expected to close on May 13. In addition, the basis for allotment will be on May 19 and the shares will be credited to the demat account on May 23.

The startup will list on the exchanges on May 24. After receiving a positive response to the recent Rainbow and Campus IPOs, Delhivery plans to open the issue next week, which is expected to give a good response to investment bankers, sources said.

The company has raised its total issue size to Rs. 7,460 crore to Rs. 5,235 crore which was earlier planned. It is now priced at Rs. 4,000 crore and Rs. 1,235 crore.

The China Momentum Fund, owned by the Fosun Group, through its affiliate Daily CMF PTE Ltd., will sell up to Rs 200 crore. 365 crore through SVF Doorbell Ltd, The OFS will comprise Rs. 454 crore by CA Swift Investment, and Rs. 165 crore by Times Internet.

Private equity investors like Carlyle have raised their OFS stake to Rs. 920 crore to Rs. 454 crore. Softbank also has reduced stake of Rs. 750 crore to Rs. 365 crore.

The co-founder of Delhivery will also participate in OFS. Mohit Tandon will sell worth Rs. 40 crore shares, Kapil Bharti will sell 5 crore shares,  and Suraj Saharan will sell shares worth Rs 6 crore.

New Delhi-based logistics startup Delhivery’s initial public offering (IPO) will open for subscriptions on May 11 and close on May 13. Delhivery Board had last week approved a proposal to go public listing and the company had earlier planned to spend Rs. 7,460 crore to reduce the size of the issue to Rs. 5,300 crore.

In the run-up to going public, the Delhivery has appointed three independent directors, including Romesh Sobti, former CEO and managing director of Indusind Bank, Kalpana Morparia, the former chairman of JPMorgan Southeast Asia, and Saugata Gupta, CEO and managing director of Marico.

Kotak Mahindra Capital, Citigroup, Morgan Stanley, and BofA Securities are managing the issue. Delhivery had applied for its IPO with the Securities and Exchange Board of India in November last year.

Due to the chaotic market conditions, Delhivery delayed the launch of the offer, which was initially scheduled for March.

“We want to go public when our company is well understood. While valuation is a factor (for delays), it is not a decisive factor – because we do not need capital, and the market conditions are currently rough,” said Sahil Barua, Delhivery co-founder and chief executive.

Recently, Delhivery has invested in a logistics automation solutions provider, Falcon Autotech. The investment is in line with Delhivery’s objective of continuous investment in future-ready hardware solutions.

The company operated 20 automated sorting centers, 124 gateways and 83 fulfillment centers across India till June last year.

The logistic startup covers more than 17,000 pin codes. The logistics company offers a complete suite of logistics services such as TL freight, cross border, express parcel transportation, PTL, supply chain and technology services.

Delhivery works with over 21,000 customers and has completed over 1 billion shipments. The logistic company plans to deploy Rs 1,000 crore to fund its acquisition plans.

The logistics company also plans to deploy Rs 2,000 crore to grow its network & infrastructure, expand its existing business lines and invest in adjacencies, and upgrade and improve its logistics operating system.

Other startups like Boat, Oyo Hotels & Homes and Snapdeal are moving slowly on their IPO plans and SEBI has yet to clear these proposals.

Website: https://www.delhivery.com