Delhivery Likely To Launch IPO In Q1 Of Next Fiscal As Market Sentiment Improves, Says Report

Delhivery had planned to raise above Rs 7,000 crore through the listing, including a fresh issue of shares worth Rs 5,000 crore and an offer-for-sale of Rs 2,460 crore

New Delhi: Delhivery, Indian logistics firms, may launch its initial public offering (IPO) in the first quarter of next financial year, quoting some investment bankers, Business Standard has reported.

The SoftBank-backed firm had earlier filed its DRHP late last November with market regulator Securities and Exchange Board of India (Sebi).

In January 2022, the Sebi had approved the logistics unicorn’s plan to file Rs 7,640 crore IPO.

However, initial plans of launching an IPO in this financial year was postponed due to challenging market conditions.

The hawkish pivot by US Federal Reserve and the ongoing war between Russia and Ukraine have roiled the IPO market after a record-breaking 2021.

According to the report, one of the bankers have said, “The market has seen an improvement in the past one week amid talks of ceasefire between Russia and Ukraine. If market conditions continue to improve, we can see large issuances such as Delhivery launch their share sale.”

Four IPOs have got launched in the past one week compared to just three between January and February.

Delhivery had planned to raise above Rs 7,000 crore through the listing, including a fresh issue of shares worth Rs 5,000 crore and an offer-for-sale (OFS) of Rs 2,460 crore.

The start-up, which was founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan, is the country’s largest multimodal, fully-integrated logistics, and supply-chain firm by revenues (FY21 basis).

In a note by Brokerage Motilal Oswal, India’s logistics sector offers a large addressable opportunity as it is pegged to grow at an annualised rate of 9 per cent to $365 billion between FY20 and FY26. It expects the growth to be higher for the organised players due to their relentless focus on technology and automation.

The logistics market is highly fragmented with organised players accounting for less than 4 per cent of market share, while Motilal Oswal said the shift to unorganised to organised sector is already underway.

The turmoil in stock market has also forced the government to postponed the mega listing of LIC to the next fiscal year.

Apart from Delhivery, VLCC Health Care, Bajaj Electronics, One Mobikwik Systems, Go Airlines, Utkarsh Small Finance Bank are the few companies which will hit the Dalal Street soon.

According to a news report, there are around 49 public issues that have received Sebi observations and likely to launch an IPO in the coming financial year.