E-Commerce Logistics Firm Delhivery Fixes IPO Price Band At Rs 462-487 Per Share

Delhivery IPO: The supply chain start-up has cut the size of the issue to Rs 5,235 crore from Rs 7,460 crore

Delhivery IPO will open for subscription on May 11 and close on May 13. Image: Getty

Source : Getty

New Delhi: Logistics supplier Delhivery on Thursday fixed a price band of Rs 462-487 per share for its Rs 5,235-crore initial public offering (IPO), the PTI reported.

According to the report, the IPO will open for subscription on May 11 and close on May 13. The company said that the bidding for anchor investors will open on May 10.

The supply chain start-up has cut the size of the IPO to Rs 5,235 crore from Rs 7,460 crore. Now, the public issue comprises fresh issuance of equity shares worth Rs 4,000 crore and an offer for sale (OFS) component of Rs 1,235 crore by existing shareholders.

Investors can bid for a minimum of 30 equity shares and in multiples thereof.

Delhivery’s investors Carlyle Group and SoftBank as well as the company’s co-founders will offload their stake in the firm under OFS.

The report mentioned that CA Swift Investments, an entity of Carlyle Group, will dilute shares to the tune of Rs 454 crore, while SVF Doorbell (Cayman), a Softbank Group subsidiary, will divest stakes worth Rs 365 crore. Deli CMF, a wholly-owned subsidiary of private equity fund China Momentum Fund, will sell shares worth Rs 200 crore, and Times Internet will dilute shares worth Rs 165 crore.

The co-founders of the e-commerce logistics firm Kapil -- Bharati, Mohit Tandon, and Suraj Saharan -- will dilute their stakes of Rs 5 crore, Rs 40 crore, and Rs 6 crore, respectively.

The company has decided to use the proceeds of the fresh issue towards funding organic growth initiatives, inorganic growth through acquisitions, other strategic initiatives, and for general corporate purposes.

About 75 per cent of the issue has been reserved for qualified institutional investors (QII), 15 per cent for the non-institutional investors, and the remaining 10 per cent for retail investors.

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

Delhivery operates across the country and provides services in 17,045 postal index number (PIN) codes.