Delhivery Surges 7 Per Cent After Carlyle's Exit Via Block Deal: Report

The stake sale marks Carlyle's exit from the logistics company. Through its special-purpose vehicle called CA Swift Investments, Carlyle held a 2.53 per cent stake in Delhivery.

Delhivery's stock price surged over 7 per cent to reach Rs 416.25 per share in early trade. This jump was driven by a reported block deal. According to a CNBC Awaaz report, around 1.8 crore shares, or a 2.5 per cent stake, of the logistics start-up changed hands on the exchanges in a block deal. The specific details regarding the sellers and buyers involved in the block deal have not been confirmed yet, although CNBC-Awaaz previously reported that Carlyle intended to sell its stake at a base price of Rs 385.5 per share, amounting to a total of $86 billion.

Investment management firm Citigroup was the sole broker for the deal, the report said.

The stake sale marks Carlyle's exit from the logistics company. As per reports, through its special-purpose vehicle called CA Swift Investments, Carlyle held a 2.53 per cent stake in Delhivery, as indicated by the company's shareholding data on the BSE as of March 31. With this stake sale, Carlyle has effectively ended its ownership in Delhivery. The Carlyle Group was one of the logistics company’s pre-IPO investors. The group had earlier sold a 2.5 per cent stake in the logistics service provider for Rs 607 crore ($74 million) in November 2022, following the expiration of the lock-in period for pre-IPO investors.

Another international investor, Tiger Global divested its stake in Delhivery through open market transactions earlier this year.

Delhivery had its initial public offering (IPO) in May last year. Since then it has experienced a lackluster performance in the stock market, witnessing a decline of around 28 per cent. In the last trading session, Delhivery's shares on the National Stock Exchange (NSE) closed slightly lower at Rs 388 per share, representing a decrease of 0.26 per cent.

However, it is worth noting that the stock has gained nearly 17 per cent year-to-date, indicating some positive momentum over the course of this year.

MoneyControl, citing Bloomberg data, reported that most brokerages have given a positive outlook on Delhivery. The consensus price target for the stock is also reported to be Rs 416.32.

The positive sentiment surrounding the company may have contributed to the interest in the stake sale, potentially preventing a decline in the stock price, the report said. 

In addition to Carlyle Group, other institutional investors holding a stake in Delhivery include HDFC Flexi Cap Fund, Mirae Asset Emerging Bluechip Fund, SBI Equity Hybrid Fund, Canada Pension Plan Investment, SVF Doorbell (Cayman), Amansa Holdings, and City Of New York Group Trust.